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Expected return on the stock compared

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A stock has a beta of 1.3 and an expected return of 11%. The risk free rate is 3% and the expected return on the market portfolio is 11%. How much better (or worse) is the expected return on the stock compared to what it should be according to the CAPM?

Enter answer in percents, accurate to two decimal places.

Reference no: EM131954647

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