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Business, 03.08.2021 20:30 kenleighbrooke67

The risk-free rate is 5%, the market risk premium is 8%, and the market return is 13%. Stock Y's beta is 1.85 and the standard deviation of its returns is 62.5%. What should be the stock's expected rate of return to make the investor indifferent toward buying or selling the stock? A. 11.66
B. 12.50
C. 15.54
D. 19.80

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The risk-free rate is 5%, the market risk premium is 8%, and the market return is 13%. Stock Y's bet...

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