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A stock has a beta of 1.6, the expected return on the market is 17 percent, and the risk-free rate is 11.05 percent. What must

A stock has a beta of 1.6, the expected return on the market is 17 percent, and the risk-free rate is 11.05 percent. What must the expected return on this stock be?

a. 38.25%

b. 19.54%

c. 20.57%

d. 21.6%

e. 21.36%

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