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Your estimate of the market risk premium is 66%. The risk-free rate of return is 22%, and General Motors has a beta of 1.5. According
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Your estimate of the market risk premium is 66%. The risk-free rate of return is 22%, and General Motors has a beta of 1.5.
According to the Capital Asset Pricing Model (CAPM), what is its expected return?
A.
11%
B.
10.5%
C.
11.6%
D.
9.9%
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