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In the CAPM, a stock has a beta coefficient of 0.5. The average returns to all stocks in the market is 8%. If the interest

In the CAPM, a stock has a beta coefficient of 0.5. The average returns to all stocks in the market is 8%. If the interest rate on three-month T-bills is at around 3 percent, what is the expected return to this stock? Assume that unsystematic risk is zero.

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