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If the market premium is 1 1 . 2 9 percent, the risk - free rate is 2 . 0 6 percent, the inflation rate

If the market premium is 11.29 percent, the risk-free rate is 2.06 percent, the inflation rate is 2.04 percent, and Tough Jaws common stock has a beta of 1.72, then what is the expected return for Tough Jaws stock?
21.48%(plus or minus 4 bps)
15.88%(plus or minus 4 bps)
17.94%(plus or minus 4 bps)
19.42%(plus or minus 4 bps)
None of the above is within 4 bps of the correct answer

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