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Suppose the market volatility 16% and expected market return is 10%. Suppose that a stock has correlation of 0.70 with the market and volatility of

Suppose the market volatility 16% and expected market return is 10%. Suppose that a stock has correlation of 0.70 with the market and volatility of 20%. Suppose the risk-free rate is 2%. find the CAPM expected return of the stock.

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