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Find what would be the return on the stock

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Reference no: EM132771800

Problem 1: You are holding a stock that and has a beta of 2 and is currently in equilibrium. The required return on the stock is 15%, and the market return is 10 percent. What would be the return on the stock, if the market return increased to 13% while the risk-free rate remained unchanged?

A. 21%
B. 18%
C. 19%
D. 20%

Reference no: EM132771800

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