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Let's assume that a government bond has a risk-free rate of 1.9%. If there is a 6.7% expected rate of return from the market, and

  1. Let's assume that a government bond has a risk-free rate of 1.9%. If there is a 6.7% expected rate of return from the market, and a stock has a beta coefficient of 1.22, what is the expected return of the stock? Round to 1 decimal place.
  2. a.7.8%
  3. b.8.6%
  4. c.12.4%
  5. d.16.9%

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