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If the market premium is 1 1 . 6 3 percent, the risk - free rate is 1 . 9 9 percent, the inflation rate

If the market premium is 11.63 percent, the risk-free rate is 1.99 percent, the inflation rate is 1.82 percent, and Tough Jaws common stock has a beta of 2.35, then what is the expected return for Tough Jaws stock?
27.33%(plus or minus 4 bps)
24.64%(plus or minus 4 bps)
22.65%(plus or minus 4 bps)
29.32%(plus or minus 4 bps)
None of the above is within 4 bps of the correct answer

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