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Assume the risk-free rate is 3% and the market return is 8%. According to the Capital Asset Pricing Model (CAPM), what is the return of

Assume the risk-free rate is 3% and the market return is 8%. According to the Capital Asset Pricing Model (CAPM), what is the return of a stock with beta of 1.75?

A. 15.8%

B. 8.75%

C. 11.1%

D. 7.8%

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