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A stock has a beta of 1 : 2 , the expected return on the market is 1 7 percent, and the risk - free

A stock has a beta of 1:2, the expected return on the market is 17 percent, and the
risk-free rate is 8 percent. What must the expected return on this stock be according
to the CAPM theory?
(a)10:8%
(b)12:8%
(c)16:8%
(d)18:8%

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