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Corporate Finance

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Return on a Stock

CORPFN-XIZ1X4

The rate on T-bills is currently 2% and the historical return on the market portfolio is 10%.

If The Coffee Company stock has a beta of 1.23, determine the return that investors would expect from holding the stock.

A

14.76%

B

11.84%

C

9.84%

D

7.84%