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The market portfolio has an expected excess return of 12% and a standard deviation of 25%.Stock A has a beta of 0.3 and a standard
The market portfolio has an expected excess return of 12% and a standard deviation of 25%.Stock A has a beta of 0.3 and a standard deviation of 32%. If the risk free rate is 2%, and stock A is fairly priced under CAPM, what is stock A's expected rate of return?
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