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A stock has an expected return of 16 percent, its beta is 0.4, and the risk-free rate is 8.8 percent. What must the expected return
A stock has an expected return of 16 percent, its beta is 0.4, and the risk-free rate is 8.8 percent. What must the expected return on the market be?
a) 27.87%
b) 26.80%
c) 25.46%
d) 28.14%
e) 18.00%
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