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A stock has a beta coefficient, , equal to 0.80.The market risk premium(Rm-Rf) associated with the market is 9 percent, and the risk-free rate is

  1. A stock has a beta coefficient, , equal to 0.80.The market risk premium(Rm-Rf) associated with the market is 9 percent, and the risk-free rate is 5 percent. Application of the capital asset pricing model indicates that the stock's appropriate return should be _____.

Group of answer choices

a.15.8%

b.12.2%

c.9.8%

d.5.2%

e.17.2%

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