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Suppose the risk free rate is 1.4% and the market risk premium is 5.4%. What is the CAPM expected return on a stock with a

Suppose the risk free rate is 1.4% and the market risk premium is 5.4%. What is the CAPM expected return on a stock with a beta of 0.7?

  1. 5.2%
  2. 4.2%
  3. 4.4%
  4. 5.0%
  5. 6.4%

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