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The risk-free rate of return is 2.5% and the expected return on the market is 8%. If the Beta on Ridgeway Co. stock is 0.8,

The risk-free rate of return is 2.5% and the expected return on the market is 8%. If the Beta on Ridgeway Co. stock is 0.8, then what is Ridgeways expected return?

A. 6.4 %

B. 8.0 %

C. 6.9 %

D. 8.9 %

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