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Share A's beta is 1.9, the return on the market is estimated at 7% and the rate of return on short dated treasury bills is
Share A's beta is 1.9, the return on the market is estimated at 7% and the rate of return on short dated treasury bills is 2%. Using the CAPM model the rate of return on share A should be:
A 6.8%
B 11.5%
C 15.3%
D 4.0%
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