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Gizmo Corp. common stock has a required return of 14.4% and a beta of 1.5. If the expected risk free return is 5%, what is

Gizmo Corp. common stock has a required return of 14.4% and a beta of 1.5. If the expected risk free return is 5%, what is the expected return for the market based on the CAPM?

a.

19.40%

b.

21.90%

c.

12.35%

d.

11.27%

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