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A stock has an expected return of 8 percent, its beta is 0.8, and the risk-free rate is 2.8 percent. What must the expected return

A stock has an expected return of 8 percent, its beta is 0.8, and the risk-free rate is 2.8 percent. What must the expected return on the market be?

Multiple Choice

  • 6.50%

  • 8.84%

  • 9.30%

  • 9.77%

  • 9.67%

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