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You are holding a stock that and has a beta of 2 and is currently in equilibrium. The required return on the stock is 15%,
You are holding a stock that and has a beta of 2 and is currently in equilibrium. The required return on the stock is 15%, and the market return is 10 percent. What would be the return on the stock, if the market return increased to 13% while the risk-free rate remained unchanged?
a) 18%
b) 21%
c) 19%
d) 20%
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