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A firm has a level of systematic risk of A= 1.5, the expected return on the market portfolio is 10%, and the risk free rate

A firm has a level of systematic risk of image text in transcribedA= 1.5, the expected return on the market portfolio is 10%, and the risk free rate of return is 5%. Based on the CAPM, the rate of return for this security is

a. 5%

b. 7.5%

c. 10%

d. 12.5%

e. 1.5%

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