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A stock has a beta of 1.8, the expected return on the market is 16 percent, and the risk-free rate is 8 percent. What must

A stock has a beta of 1.8, the expected return on the market is 16 percent, and the risk-free rate is 8 percent. What must the expected return on this stock be?

rev: 09_20_2012

21.28%

23.3%

22.4%

23.52%

36.8%

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