Question: Using the CAPM formula, what return should a client expect from a security that returned 10% with a standard deviation of 6%, a beta of

Using the CAPM formula, what return should a client expect from a security that returned 10% with a standard deviation of 6%, a beta of 1.5, when the overall market return has been 8%, and the risk-free rare is around 2%?

a. 8%;

b. 9%

c. 10%:

d. 11%.

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