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Stock X has a standard deviation of 25 percent and a correlation coefficient of 0.7 with market returns. The expected return of the market is

Stock X has a standard deviation of 25 percent and a correlation coefficient of 0.7 with market returns. The expected return of the market is 12 percent with a standard deviation of 15 percent. The risk-free rate is 5 percent. What is the required return of Stock X?

7.94%

9.56%

13.17%

15.28%

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