What would expected return on the stock

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According to CAPM theory (Capital Asset Pricing Model), if a stock has a beta of 1.5, the expected return on the overall market is 10% and the risk free rate is 3.2%, what would the expected return on the stock be?

a. 8.6 percent

b. 12.3 percent

c. 13.4 percent

d. 18.20 percent

e. Not enough information given

Reference no: EM131338846

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