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Stock M has a relevant risk equals 1.75, and unsystematic risk equals 2. If the real risk-free rate of interest equals 3 percent, inflation premium
Stock M has a relevant risk equals 1.75, and unsystematic risk equals 2. If the real risk-free rate of interest equals 3 percent, inflation premium equals 2 percent, expected market return equals 11 percent, and the required rate of return on a portfolio consisting of all stocks, which is the market portfolio equals 11 percent, what is Stock Ms required rate of return? Interpret your answer.
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