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The risk-free rate is currently 3%, and the market risk premium is 7%. According to the Capital Asset Pricing Model, the expected return on a
The risk-free rate is currently 3%, and the market risk premium is 7%. According to the Capital Asset Pricing Model, the expected return on a security with a beta of 1.25 is:
A.
5%
B.
11.75%
C.
8.75%
D.
12.50%
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