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A stock's beta is 40% higher than that of the market's. Assuming that the CAPM holds, what is the expected return for the stock, if

A stock's beta is 40% higher than that of the market's. Assuming that the CAPM holds, what is the expected return for the stock, if the risk free rate is 3% and the market's expected return is 8%?

10%

12%

11.2%

14.2%

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