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The expected return on the market is 18%. The required return of a stock with a beta of 1.2 is 20%. If only the expected
The expected return on the market is 18%. The required return of a stock with a beta of 1.2 is 20%. If only the expected return on the market changes to 25% (riskfree rate and beta remain unchanged), what is the new expected return of the stock?
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