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Problem 2.5 (10 pts) Stock A has a beta of 1.2 and an expected rate of return of 0.138. Stock B has a beta of

Problem 2.5 (10 pts) Stock A has a beta of 1.2 and an expected rate of return of 0.138. Stock B has a beta of 0.35. The market risk premium is 6%. Find the expected rate of return of Stock B

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