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Suppose the risk-free rate is 7%, the required return on the market is 16%, and the beta of a stock is 1.7. What is the
Suppose the risk-free rate is 7%, the required return on the market is 16%, and the beta of a stock is 1.7. What is the required rate of return on the stock? (Please show work)
a. $10
b. $10.33
c. $33.33
d. $83.33
Options are correct. I worked it out and the answer is $83.33.
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