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Problem:

A particular stock has an expected return of 11%. If the expected risk premium on the market portfolio is 8%, and the risk-free rate is 5%, what is the stock's CAPM beta?

A. 1.375

B. 0.750

C. 0.846

D. 0.462

Additional Information:

This question is basically belongs to the Finance as well as it is about computation of company stock's CAPM.

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