The expected return for a stock, calculated using the CAPM, is 25 percent. The risk-free rate is 7.5 percent, and the beta of the stock is 0.80. Calculate the implied return on the market.
A) 7.50 percent
B) 13.91 percent
C) 17.50 percent
D) 21.88 percent
E) 14.38 percent

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The Answer of The expected return for a stock, calculated using the CAPM, is 25 percent. The risk-free rate is 7.5 percent, and the beta of the stock is 0.80. Calculate the implied return on the market.
A) 7.50 percent
B) 13.91 percent
C) 17.50 percent
D) 21.88 percent
E) 14.38 percent

The Expected Return for a Stock, Calculated Using the CAPM