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A stock has a beta of 1.45. The expected return on the S&P 500 is 8.5%, and the rate of return on risk-free treasury securities

A stock has a beta of 1.45. The expected return on the S&P 500 is 8.5%, and the rate of return on risk-free treasury securities is 2.0%. What is this firms required rate of return?

11.4%

22.4%

9.4%

4.2%

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