What would be the expected return on a stock

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What would be the expected return on a stock given the following: the rate of return on 1 year CD's is 2%, the return on 90 day T-Bills is 4%, the return on 10 year T-Bonds is 7%, the Prime is 8%, the return on the S&P 500 is expected to be 12%, your stock is considered to be twice as risky as the S&P 500 and the earth is 1 AU from the Sun. (AU = astronomical unit, roughly = to 93 million miles. While that has absolutely nothing to do with this problem, as a college student you should know its stuff!)

Reference no: EM13907229

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