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Suppose that T-bills are yielding 5.2 percent and the S&P 500 is expected to return 12 percent in the next year. If the beta of

Suppose that T-bills are yielding 5.2 percent and the S&P 500 is expected to return 12 percent in the next year. If the beta of stock A is 0.9, then the expected (or required) return for stock A is: 16.05% 11.32% 13.18% 11.00% None of these answers is correct.

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