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You are considering buying a stock with a beta of 1.28. If the risk-free rate of return is 5.0%, and the expected return for the

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You are considering buying a stock with a beta of 1.28. If the risk-free rate of return is 5.0%, and the expected return for the market is 12.0%, what should the expected rate of return be for this stock? 26.85%20.36%13.96%11.49%16.09% Question 7 (4 points) You are considering buying a stock with a beta of 2.59. If the risk-free rate of return is 4.0%, and the market risk premium is 10.0%, what should the expected rate of return be for this stock? 29.90%19.54%39.44%16.08%26.45% What is the expected return for the following stock? Outcomes Returns Probability Better 39\% 12\% Same 21\% 39\% Worse 15%49% 17.85% 20.22% 21.90% 23.15% 24.89% What is the expected return for the following stock? Outcomes Returns Probability Better 37\% 11\% Same 26\% 28\% Worse 19%61% 22.94% 20.26% 24.84% 26.27% 28.24% You are holding a stock that has a beta of 2.24 and is currently in equilibrium. The required return on the stock is 32.13%, and the expected return on the market portfolio is 17.80%. What would be the expected return on the stock if the expected market return increased to 22.00% while the risk-free rate and beta remained unchanged? 32.13%55.52%41.54%49.64%36.10%

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