Your Estimate of the Market Risk Premium Is 6

question 39

Multiple Choice

Your estimate of the market risk premium is 6%.The risk-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 expected return?

• A)9.1%
• B)10.5%
• C)12.0%
• D)12.2%

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