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A stock has three risk factors with loadings of 0 . 8 3 , 1 . 1 and 1 . 2 . The first risk
A stock has three risk factors with loadings of and The first risk factor is the same as the CAPM. The other two factors have risk premia of and pa respectively. Given that the stock is believed to be fairly priced, has an expected return of and the US treasury bill rate is pa what is the expected return on the market for the coming year?
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