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Your estimate of the market risk premium is 9%. Therisk-free rate of return is 3.5% and General Motors has a beta of 1.3. According to

Your estimate of the market risk premium is 9%. Therisk-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 its expectedreturn?

A.

13.7%

B.

15.2%

C.

14.4%

D.

16%

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