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Stock A has a of 1.2. The expected excess return on the market is 10% and the riskfree rate is 5%. According to the CAPM,
Stock A has a of 1.2. The expected excess return on the market is 10% and the riskfree rate is 5%. According to the CAPM, what is the expected return of stock A? ( is the CAPM beta of stock A)
I. | 11% | |
II. | 17% | |
III. | 10% | |
IV. | 5% |
Answer only. NO EXPLANATION NEEDED thanks
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