Determine the expected return of common stock

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Siebling Manufacturing Company's common stock has a beta of .8. If the expected risk-free return is 7% and the market offers a premium of 8% over the risk-free rate, what is the expected return on Siebling's common stock?
a. 7.8%
b. 13.4%
c. 14.4%
d. 8.7%

Reference no: EM1355649

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