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The risk-free rate and the expected market rate of return are 5% and 10% respectively. According to the Capital Asset Pricing Model (CAPM), the expected

The risk-free rate and the expected market rate of return are 5% and 10% respectively. According to the Capital Asset Pricing Model (CAPM), the expected rate of return on security X with a beta 1.2 is equal to a. 6% b. 15% c. 12% d. 11% e. cannot be determined.

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