Expectation of the rate of return on the stock

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Reference no: EM131850225

Investors expect the market rate of return this year to be 11.50%. The expected rate of return on a stock with a beta of 0.8 is currently 9.20%. If the market return this year turns out to be 8.10%, how would you revise your expectation of the rate of return on the stock?

Revised rate of return

Reference no: EM131850225

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