Question: Problem 11-13 Using CAPM [LO 4] A stock has a beta of 1.24, the expected return on the market is 11.8 percent, and the risk-free

Problem 11-13 Using CAPM [LO 4]

A stock has a beta of 1.24, the expected return on the market is 11.8 percent, and the risk-free rate is 4.55 percent.

Required:

What must the expected return on this stock be?

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