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You undertake market research and come up with the following information: Idiosyncratic risk for Snap stock (): 12% Total risk for Snap stock (i): 25%

You undertake market research and come up with the following information: Idiosyncratic risk for Snap stock (): 12% Total risk for Snap stock (i): 25% Average return of Snap stock: 16%

The market portfolio has a risk of 13% (m), and an expected return is 10%. The risk-free rate is 4%. Assume that CAPM holds.

According to CAPM, what should the expected return of Snap be?

Group of answer choices

20.87%

16.87%

10.12%

15.09%

14.12%

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