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The expected market return is 6%, and its standard deviation is 10%. The risk-free rate is 2%. If CAPM holds, what is the expected return

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The expected market return is 6%, and its standard deviation is 10%. The risk-free rate is 2%. If CAPM holds, what is the expected return on an asset which generates alpha=1%, has beta=1.9 and standard deviation=15%? Select one: a. 3.0% b. 10.6% c. 12.496 d. 10.0% e. 7.0%

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