What is the expected return for stock with beta

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Reference no: EM132012096

The estimated market risk premium under the Capital Asset Pricing Model is 9 percent and the risk free rate of return is 3.8 percent. What is the expected return for a stock with a beta of 1.8? (Show in decimal form to three decimals, e.g., 12.3% would be 0.1233). Please show work.

Reference no: EM132012096

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