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The current price of a stock with a beta of 1.27 is $142. The stock is expected to pay a dividend of $6.8 next year.

The current price of a stock with a beta of 1.27 is $142. The stock is expected to pay a dividend of $6.8 next year. Assume that the expected return on a well-diversified portfolio with a beta of 1 is 16% and risk-free rate is 3%. What is the required return of the stock based on CAPM?

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