The risk-free rate is 42% and you believe that the S&P 500's excess return will be 9.9% over the next year. If you inves
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The risk-free rate is 42% and you believe that the S&P 500's excess return will be 9.9% over the next year. If you inves
The risk-free rate is 42% and you believe that the S&P 500's excess return will be 9.9% over the next year. If you invest in a stock with a beta of 1.4 (and a standard deviation of 30%), what is your best guess as to its expected excess return over the next year? The expected excess roturn over the next year is 3% (Round to two decimal places)
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