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Stock A is correctly priced and has an expected return of 12%, a standard deviation of 25% and a beta of 1.05. The risk-free rate

Stock A is correctly priced and has an expected return of 12%, a standard deviation of 25% and a beta of 1.05. The risk-free rate is 4%. What is the stocks return per unit of systematic risk?

a. 8.0% b. 13.0% c. 7.6% d. 11.4% e. 10.7%

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