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A stock has an historical average return of 9.8%, and standard deviation of 8.8%. The market is expected to earn a 9.7% rate of return,
A stock has an historical average return of 9.8%, and standard deviation of 8.8%. The market is expected to earn a 9.7% rate of return, and has a standard deviation of 5.9%. The stock's beta coefficient is 1.35, and the risk free rate of return is 3.5%. What is the required return for this stock investment using the capital asset pricing model?
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