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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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