What is the market expected return for next year

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Question - Assume that Treasury bills yield 10%, and 3F Company's expected return for next year is 18% and its beta is 2, what is the market's expected return for next year? Assume the capital asset pricing model (CAPM) applies and everything is in equilibrium.

A. 15%

B. 13%

C. 14%

D. 12%

Reference no: EM132613197

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