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Suppose a stock has the following information. It is listed on the London stock exchange. The yield on a UK 10 year treasury is 2.5%.

Suppose a stock has the following information. It is listed on the London stock exchange. The yield on a UK 10 year treasury is 2.5%. The stock in question is supposed to earn 4.6% as per historical data. The Beta for the stock is 1.2. Calculate the Expected Rate of Return of the Assets.

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