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You want to buy shares of General Motors. The market risk premium is 7.0%. The risk-free rate of return is 3.5%, and General Motors has

You want to buy shares of General Motors. The market risk premium is 7.0%. The risk-free rate of return is 3.5%, and General Motors has a Beta of 1.3. According to the Capital Asset Pricing Model (CAPM), what is the expected return on the stock?

  • A.10.9%
  • B.11.3%
  • C.12.6%
  • D.13.1%

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