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You invest in a stock with beta equal to 0.5. The risk free rate is 0.06 and the expected return on the market portfolio is
You invest in a stock with beta equal to 0.5. The risk free rate is 0.06 and the expected return on the market portfolio is 0.06 . Based on the CAPM, what is the expected return of the stock?
(Give your answer with decimals only, e.g. 0.21)
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