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45. Your estimate of the market risk premium is 7%. The risk-free rate of return is 3.4% and General Motors has a beta of 1.4.

45. Your estimate of the market risk premium is 7%. The risk-free rate of return is 3.4% and General Motors has a beta of 1.4. According to the Capital Asset Pricing Model (CAPM), what is its expected return? A. 13.9% B. 11.9% C. 13.2% D. 12.5%

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