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If the expected return on the market is 1 3 . 1 3 percent, inflation is 5 . 0 7 percent, the market premium is

If the expected return on the market is 13.13 percent, inflation is 5.07 percent, the market premium is 6.88 percent, and Big Smiles common stock has a beta of 2.37, then what is the expected return for Big Smiles stock? 25.35%(plus or minus 4bps)
16.31%(plus or minus 4bps)
22.56%(plus or minus 4 bps)
7.74%(plus or minus 4bps)
None of the above is within 4 bps of the correct answer
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