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The following factors were identified regarding Stock B. the stock sensitivity to each factor and the related risk premium associated with each factor were calculated
The following factors were identified regarding Stock B. the stock sensitivity to each factor and the related risk premium associated with each factor were calculated as follows GDP- 0.8, RP 6% Inflation rate 1.4, RP=10.5 Gold Price 0.5, RP=6% Standard and Poor 500=1.2, RP=6% Risk free rate=6% What is the expected return of Stock B?
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