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Question 18 5 pts The stock has a beta compared to the market of 0.8, which means it is less risky than a market portfolio.

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Question 18 5 pts The stock has a beta compared to the market of 0.8, which means it is less risky than a market portfolio. Also, assume that the risk-free rate is 2% and this investor expects the market to rise in value by 6.5% per year. What is the expected return of the stock based on the CAPM formula? 5.6% O 7.2% 5.2% 8.8% 6.4%

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