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INVESTORS EXPECT THE MARKET RATE OF RETURN THIS YEAR TO BE 10%.

INVESTORS EXPECT THE MARKET RATE OF RETURN THIS YEAR TO BE 10%.

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Investors expect the market rate of return this year to be 10%. A stock with a beta of 1.8 has an expected rate of return of 16%. If the market return this year turns out to be 6%, what is the rate of return on the stock? (Do not round intermediate calculations. Enter your answer as a percent rounded to 1 decimal place.)


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