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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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