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You looked up the market risk return to be 12%. The risk-free rate of return is 2%, and General Motors has a beta of 1.2.

You looked up the market risk return to be 12%. The risk-free rate of return is 2%, and General Motors has a beta of 1.2. According to the Capital Asset Pricing Model (CAPM), what is its expected return?

O A. 12.4%

O B. 14.0%

O C. 10.4%

O D. 13.2%

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