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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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