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Consider a stock that has a correlation with the market of 0.2 and a standard deviation of 21%. According to the CAPM, if market has
Consider a stock that has a correlation with the market of 0.2 and a standard deviation of 21%. According to the CAPM, if market has an expected return of 11% and a standard deviation of 33%, and the risk-free rate is 3%, what will be the stocks expected rate of return?
Express your answer in decimal format, rounded accurately to 4 decimal places (e.g., 10.67% should be expressed as 0.1067 and nothing else).
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