Assume that the risk-free rate of return is 4%,and the expected return on the market portfolio is 10%.If the expected return of ABC is 12%,calculate the firm's beta using the Capital Asset Pricing Model (CAPM) .(Round your final answer to 2 decimal places.)
A) 1
B) 1.25
C) 1.33
D) 1.5
Correct Answer:
Verified
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