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Suppose the stock of Carolina Consulting has a beta of 0.86. If the risk-free interest rate is 4% and the market risk premium is 8%,

Suppose the stock of Carolina Consulting has a beta of 0.86. If the risk-free interest rate is 4% and the market risk premium is 8%, what is the expected return of the stock for Carolina Consulting?

a. 6.88% b. 7.44% c. 10.88% d. 12.10% e. 13.23%

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