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The riskfree rate of interest is 4% and the market risk premium is 9%. Howard Corporation has a beta of 2.0, and last year generated

The riskfree rate of interest is 4% and the market risk premium is 9%. Howard Corporation has a beta of 2.0, and last year generated a return of 16% with a standard deviation of returns of 27%. The required return on Howard Corporation stock is:

A.

26%.

B.

22%.

C.

14%.

D.

36%.

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