Question: If we accept the Sharpe model as a description of expected returns, using the data in Table 16.1, find the expected return on a stock

If we accept the Sharpe model as a description of expected returns, using the data in Table 16.1, find the on a stock in the construction industry with the following characteristics. Assume a riskless rate of 8%:
Beta = 1.2
Yield = 6
Size = 0.4
Bond beta = 0.2
Alpha = 1

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