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The stock of Derek and the Dominos is expected to earn a return of 1 2 . 1 % next year. You know that the

The stock of Derek and the Dominos is expected to earn a return of 12.1% next year. You know that the risk-free rate is 3.2 percent, the market return is 12.1 percent, and that the beta of Derek and the Dominos stock is 1.17? Given this information, which of the following is true?

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