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9. Suppose the expected return on the market is 10 percent and the risk-free rate is 5 percent. Solomon Inc. stock has a beta of

9. Suppose the expected return on the market is 10 percent and the risk-free rate is 5 percent. Solomon Inc. stock has a beta of 1.4. What is the expected return on the Solomon stock?

Question 9 options:

A)

7.8%

B)

12.8%

C)

19.3%

D)

12.0%

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