=+3 Share A has a beta of 2, share B has a beta of 0.5 and C

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=+3 Share A has a beta of 2, share B has a beta of 0.5 and C a beta of 1. The riskless rate of interest is 7 per cent and the risk premium for the market index has been 5 per cent. Calculate the expected returns on A, B and C (assuming the CAPM applies).

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