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A stock has a beta of 1.25, the expected return on the market is 12 percent, and the risk-free rate is 2 percent. What must

A stock has a beta of 1.25, the expected return on the market is 12 percent, and the risk-free rate is 2 percent. What must the expected return on this stock be? (Show your work and express your percentage in two decimal places). (Points : 20)

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