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Consider a single index model, the alpha of a stock is 2%, the beta is 1.1, the expected market return is 12%, and the risk-free
Consider a single index model, the alpha of a stock is 2%, the beta is 1.1, the expected market return is 12%, and the risk-free rate is 1%. What is the expected return of the stock?
A. 11.2%
B. 14%
C. 13.2%
D. 15.1%
E. Not enough informatioN
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