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A stock has a beta of 1.4, the expected return on the market is 15 percent, and the risk-free rate is 7.5 percent. What must

A stock has a beta of 1.4, the expected return on the market is 15 percent, and the risk-free rate is 7.5 percent. What must the expected return on this stock be?

rev: 09_20_2012

18%

18.72%

17.1%

18.9%

28.5%

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