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7. The risk-free rate is 3.6% and you believe that the S&P 500 's excess return will be 8.1% over the next year. If you

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The risk-free rate is 3.6% and you believe that the S\&P 500 's excess return will be 8.1% over the next year. If you invest in a stock with a beta of 1 (and a standard deviation of 30%), what is your best guess as to its expected excess return over the next year? The expected excess return over the next year is \%. (Round to two decimal places.)

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