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Frantic Fireworks, Inc. has a beta of 1.25. The market risk premium is 8%, the prime interest rate is 2%, the risk free T-bill rate
Frantic Fireworks, Inc. has a beta of 1.25. The market risk premium is 8%, the prime interest rate is 2%, the risk free T-bill rate is 3%, the inflation rate is 4%, and the economic growth rate is 2%. What is the expected return on this stock?
10 percent
13 percent
11 percent
12 percent
14 percent
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