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Estimates of a firm's returns revealed that beta of the firm was 1.5, and the historical average market return over the past 5 years has
Estimates of a firm's returns revealed that \beta of the firm was 1.5, and the historical average market return over the past 5 years has been 13.200%, and the current risk-free rate is 3.05%. What is the expected return of this stock based on the Capital Asset Pricing Model (CAPM). a. 13.200% O b. 18.275% O c. 15.225% O d. 22.850%
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