Based on the capital asset pricing model

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ABC has a beta of 1.1. The expected return for the S&P 500 stock index is 15.8 percent and U.S. Treasuries are expected to yield 3.2 percent. Based on the Capital Asset Pricing Model (CAPM), what is ABC's expected rate of return? (show your answer in decimal form to four places)

Reference no: EM131508027

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