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a. What is the expected market return at a time when Treasury bills yield 6% and a stock with a beta of 1.4 is expected

a. What is the expected market return at a time when Treasury bills yield 6% and a stock with a beta of 1.4 is expected to return 18%?

8.67%

10.84%

12.02%

14.57%

b. The expected return on an investment provides compensation to investors both for waiting and for worrying.

True

False

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