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The risk-free rate in the economy is 2.0%. The expected return on the market portfolio is 9.9%. Stock G typically moves in the same direction
The risk-free rate in the economy is 2.0%. The expected return on the "market portfolio" is 9.9%. Stock G typically moves in the same direction as the market and is 130% as risky as the market. What is the expected return on Stock G? Write your answer out to four decimals - for example, write 11.25% as .1125.
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