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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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