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Over the next year, you expect that market portfolio will earn 6%, and you observe that the risk-free rate over that same period is 1.5%.
Over the next year, you expect that market portfolio will earn 6%, and you observe that the risk-free rate over that same period is 1.5%. If you have a stock with a beta of 1.2, what is the required return you expect to earn?
Group of answer choices
6.9%
5.4%
8.7%
7.2%
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