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Suppose the market follows a single index model, where the index has expected return of 0.12 and risk-free rate is 0.06. For a stock with

Suppose the market follows a single index model, where the index has expected return of 0.12 and risk-free rate is 0.06. For a stock with beta of 3 and abnormal return of 0.01, what is the expected return?

0.37

0.24

0.43

0.25

0.19

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