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Please don't forget UNITSThe risk-free rate is 2.7% and the market risk premium is 6.0%. A stock has a beta of 0.9, what is its expected return of the

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Answer #1

Expected Return = Risk free rate + Beta * Market Risk Premium

= 0.027 + 0.9 * 0.06

= 0.027 + 0.054

Expected Return = 0.081 or 8.1%

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