Question: What is the expected return for a stock that typically outperforms the S&P 500 by a factor of 1.26(times) in a market where T-bills yields3.2%,

What is the expected return for a stock that typically outperforms the S&P 500 by a factor of 1.26(times) in a market where T-bills yields3.2%, and the market yields 8.9%?

a) 8.78%

b) 18.45%

c) 10.38%

d) 12.77%

e) 7.37%

e)

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