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we are trying to compute the expected return on a stock. We know that the stocks beta is 1.5 and the return on Treasury Bills

we are trying to compute the expected return on a stock. We know that the stocks beta is 1.5 and the return on Treasury Bills last year was about 1%. We also know that the NASDAQ composite return for last year was 30%. Use the Capital Asset Pricing Model (CAPM) to compute the expected return for the stock.

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