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Suppose a stock's realized return last year was 2.0% and its beta is 0.7. If the overall stock market's realized return was 2.9% and the
Suppose a stock's realized return last year was 2.0% and its beta is 0.7. If the overall stock market's realized return was 2.9% and the T-bill's realized return was 1.0%, what was the stock's NORMAL return? Enter your answer as a decimal showing four decimal places. That is, if your answer is 5.25%, enter .0525.
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