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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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