A stock has a beta of 2.1. Suppose the expected market return is 7.3% and the risk-free rate is 1.4%. What is this stock's expected return according to the CAPM? Answer in percent rounded to one decimal place.

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Which of the following is likely to happen if investors collectively become more risk tolerant? Pick the best answer.

A. Stock prices would increase

B. Required returns would decline

C. Betas would increase

D. The risk-free rate would decline