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A regression of STSLM's excess return on the Wilshire 5000's excess returns over the last several months. From this regression, you get beta = 1.5,
A regression of STSLM's excess return on the Wilshire 5000's excess returns over the last several months. From this regression, you get beta = 1.5, alpha = 0.02, and the R-squared = 0.44. Given we expect the Wilshire 5000 to return 11% and T-bills are yielding 2%, what is the expected return on STSLM stock?
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