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DEF Retailing has a beta of 1.2 and a standard deviation of 30%. DEF earned $1 million in net income last year. The risk free

DEF Retailing has a beta of 1.2 and a standard deviation of 30%. DEF earned $1 million in net income last year. The risk free rate is 2% and the market risk premium is 5%. What is the expected return on DEF Retailing? 5.6% 7.4% 8.0% 3.5%

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