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. If next year, GM earned a return of 20%, find the UNEXPECTED return not explained by CAPM. GM has a beta of 1.6, the
. If next year, GM earned a return of 20%, find the UNEXPECTED return not explained by CAPM. GM has a beta of 1.6, the risk free rate is 3%, the market risk premium is 8%, and the corporate tax rate is 35%.
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