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Suppose the risk-free rate is 2.5% and the market risk premium is 5.5% (i.e., the expected return on the market portfolio is 8.0%). What is
Suppose the risk-free rate is 2.5% and the market risk premium is 5.5% (i.e., the expected return on the market portfolio is 8.0%). What is the expected return for investing in a stock that has a beta of 1.75?
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