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Bell Weather, Inc. has a beta of 1 . 2 5 . The return on the market portfolio is 1 2 . 5 % ,

Bell Weather, Inc. has a beta of

1.25 .

The return on the market portfolio is

12.5 %,

and the risk

-

free rate is

5 % .

According to CAPM, what is the required return on this stock?

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