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Rock Hard Bagels, Inc. common stock has a beta of 3.25. If the return on the S&P 500 is expected to be 14% and the
Rock Hard Bagels, Inc. common stock has a beta of 3.25. If the return on the S&P 500 is expected to be 14% and the risk-free rate is 5.5%, what is Rock Hard Bagels' expected return?
a. 33.13%
b. 51.00%
c. 22.75%
d. 45.50%
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