Question: Suppose you observe the following situation: Security Beta Expected Return ABC Corp. 0.8 7% XYZ Corp. 1.2 9% Assume these securities are correctly priced. Based

Suppose you observe the following situation: Security Beta Expected Return ABC

Suppose you observe the following situation: Security Beta Expected Return ABC Corp. 0.8 7% XYZ Corp. 1.2 9% Assume these securities are correctly priced. Based on the CAPM, what is the return on the market? O A. 6% OB. 8%

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