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A stock has a beta of 1.4. An investors expect the return on the market to be 8% and the risk-free rate to be 3%.

A stock has a beta of 1.4. An investors expect the return on the market to be 8% and the risk-free rate to be 3%. According to the CAPM, the expected return on the stock is closest to:

7%, 10%, or 14.2%

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