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The common stock of Flavorful Teas has a beta of 48. The risk-free rate of return is 2.5 percent. The return on the market is

  1. The common stock of Flavorful Teas has a beta of 48. The risk-free rate of return is 2.5 percent.
  1. The return on the market is 12 percent and. What is the expected return on this stock?
  2. If the Market risk premium is 8.5%, what is the expected return on this stock?

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