1. Gener Motors (GM) has an unlevered equity beta of 0.56 and the debt beta for a BBB credit is 0.24. We also know that GM's CFO likes to keep the debt to value ratio at 1/3. We also know that the risk free rate on a T bill is 2% while the market expected return is 12%. Based on this information, please estimate the levered equity beta and the Expected return for GM stock.

   		0.72; 9.20%
   		1.0; 12.00%
   		1.20; 14.0%
   		0.80; 10.0%