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Suppose the CAPM holds. The risk-free rate is 2%, and the expected return of the market portfolio is 10%. Beta of Stock A is 1.2.

Suppose the CAPM holds. The risk-free rate is 2%, and the expected return of the market portfolio is 10%. Beta of Stock A is 1.2. Find out the expected return of Stock A. Group of answer choices

14%

14.4%

12%

11.6%

9.6%

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