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The risk-free rate is 5 percent and the expected market risk premium is 7 percent. What is the expected rate of return on a stock

The risk-free rate is 5 percent and the expected market risk premium is 7 percent. What is the expected rate of return on a stock with a beta of 1.2?

13.4 percent

8.4 percent

19.4 percent

12.0 percent

14.4 percent

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