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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
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?
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