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The risk-free rate is 6 percent and the expected market risk premium is 8 percent. What is the expected rate of return on a stock
The risk-free rate is 6 percent and the expected market risk premium is 8 percent. What is the expected rate of return on a stock with a beta of 0.7?
- 11.6 percent
- 9.8 percent
- 15.8 percent
- 14.0 percent
- 5.6 percent
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