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Dominics Dominoes, Inc. has a beta of 1.26. If the current rate on Treasury Bills is observed to be 5.4% and the stock market has

Dominics Dominoes, Inc. has a beta of 1.26. If the current rate on Treasury Bills is observed to be 5.4% and the stock market has an expected risk premium return of 9%. What return can investors expect on the stock?

16.74%

9.94%

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Cannot be determined from the information provided

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