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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