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A stock has an expected return of 10 percent, its beta is 0.4, and the risk-free rate is 3.5 percent. What must the expected return

A stock has an expected return of 10 percent, its beta is 0.4, and the risk-free rate is 3.5 percent. What must the expected return on the market be?

Multiple Choice 1

6.25%

19.75%

18.76%

20.74%

20.54%

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