Question: Question 20 8 pts The stock has a beta compared to the market of 1.15, which means it is riskier than a market portfolio. Also,
Question 20 8 pts The stock has a beta compared to the market of 1.15, which means it is riskier than a market portfolio. Also, assume that the risk-free rate is 2.25% and this investor expects the market risk premium is 7.5%. What is the expected return of the stock based on the CAPM formula? O 8.29% 09.55% 10.88% 6.97%
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