Assuming the CAPM holds, what is the cost of equity for a firm if the firm's equity has a beta of 1.2, the risk-free rate of return is 2%, the expected return on the market is 9%, and the return to the company's debt is 7%? A. 10.8% B. 12.8% C. 10.4% D. 14.4% In a strongly efficient market, the price of a security will: A. always rise immediately upon the release of new information with no further price adjustments related to that information. B. react to new information over a two-day period after which time no further price adjustments related to that information will occur. C. rise sharply when new information is first released and then decline to a new stable level by the following day. D. react immediately to new information with no further price adjustments related to that informa- tion