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The expected return for a stock, calculated using the CAPM, is 25 percent. The riskree rate is 7.5 percent, and the beta of the stock

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The expected return for a stock, calculated using the CAPM, is 25 percent. The riskree rate is 7.5 percent, and the beta of the stock is 0.80. Calculate the implied return on the market. a. 7.50 percent b. 17.50 percent c. 21.88 percent d. 14.38 percent e. 13.91 percent

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