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A stock has a beta of 2.1, the risk-free rate is 4.5 percent, and the expected return on the market is 10 percent. Using the

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A stock has a beta of 2.1, the risk-free rate is 4.5 percent, and the expected return on the market is 10 percent. Using the CAPM, what would you expect the required rate of return on this stock to be? What is the market risk premium? 7 A BI !!! III % c? c

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