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The beta of Stock Y is 0.5 (indicating that its returns rise when returns on most other stocks fall). If the risk-free rate is 5.3
The beta of Stock Y is 0.5 (indicating that its returns rise when returns on most other stocks fall). If the risk-free rate is 5.3 percent and the expected rate of return on an average stock is 8.4 percent, what is the required rate of return on Stock Y?
a.1.55%
b.6.85%
c.9.50%
d.1.10%
e.3.75%
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