Question: Last year, Rocket Inc. earned a 20% return. Farmer's Corp. earned 10%. The overall market return last year was 17%, and the risk-free rate was
Last year, Rocket Inc. earned a 20% return. Farmer's Corp. earned 10%. The overall market return last year was 17%, and the risk-free rate was 3%. If Rocket stock has a beta of 1.8 and Farmer's has a beta of 0.4, which stock performed better once you take risk into account?
Rocket's expected return is ____%
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