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8. If the current risk free rate is 1%, market expected return is 7% and stock XYZ has a beta of 2, then according to

8. If the current risk free rate is 1%, market expected return is 7% and stock XYZ has a beta of 2, then according to CAPM, the expected return on XYZ is:

a. 1%

b. 2%

c. 7%

*d. 13%

e. 15%

The answer is D. can you please explain and show work! Thank you.

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