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A stock has an expected return of 14 percent, its beta is 1.50, and the risk-free rate is 5.4 percent. What must the expected return
A stock has an expected return of 14 percent, its beta is 1.50, and the risk-free rate is 5.4 percent. What must the expected return on the market be?
I think the expected return is calculated with: Expected Return = risk free rate + beta*(Return on market - Risk free rate)
But I have no idea how I find return on market.
Thanks for your help.
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