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A stock has an expected return of 12.5% and a beta of 1.10. The risk-free rate is 3.2%. What is the slope of the security

A stock has an expected return of 12.5% and a beta of 1.10. The risk-free rate is 3.2%. What is the slope of the security market line?

  • 7.03%

  • 8.45%

  • 6.78%

  • 7.25%

  • 5.92%

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