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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
- 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.
- a.7.8%
- b.8.6%
- c.12.4%
- d.16.9%
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