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The risk-free rate of interest is 4% and the market risk premium is 8%. FC Corporation has a beta of 1.8, and last year generated

The risk-free rate of interest is 4% and the market risk premium is 8%. FC Corporation has a beta of 1.8, and last year generated a return of 15% with a standard deviation of returns of 21%. The required return on FC Corporation stock is

A. 19.6%.

B. 16.4%.

C. 23.5%.

D. 18.4%.

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