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A regression of Apples returns versus the S&P 500 (the market) resulted in the following equation: Return of Apple = 1.4 * Market + 4%.

A regression of Apples returns versus the S&P 500 (the market) resulted in the following equation: Return of Apple = 1.4 * Market + 4%. If the market returned 7%, what is the expected return on Apple?

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