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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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