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Consider a stock that has a correlation with the market of 0.57 and a standard deviation of 19%. According to the CAPM, if market has
Consider a stock that has a correlation with the market of 0.57 and a standard deviation of 19%. According to the CAPM, if market has an expected return of 10% and a standard deviation of 28%, 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.
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