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Your estimate of the market risk premium is 7%. Therisk-free rate of return is 5%, and General Motors has a beta of 1.2. According to

Your estimate of the market risk premium is 7%. Therisk-free rate of return is 5%, and General Motors has a beta of 1.2. According to the Capital Asset Pricing Model(CAPM), what is its expectedreturn?

13.4%

11.4%

12.7%

10.1%

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