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BW, 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 the Capital

BW, 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 the Capital Asset Pricing Model (CAPM), what is the required return on this stock?

Group of answer choices

15.62%

20.62%

9.37%

14.38%

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