Expected excess return over the next year

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The risk-free rate is 4.3?% and you believe that the S&P 500's excess return will be 11.9 % over the next year. If you invest in a stock with a beta of 1.2 (and a standard deviation of 30%), what is your best guess as to its expected excess return over the next year?

The expected excess return over the next year is ____%.

(Round to two decimal places.)

Reference no: EM132044499

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