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NEW QUESTION: 1
The shares of Derwent Co and Plym Co have beta values of 0*5 and 1*2 respectively.
The expected rate of return for Derwent Co investors is 9% and the expected return to the market is 12%.
Using the Capital Asset Pricing Model, what is the expected rate of return for investors in Plym Co?
A. 13*2%
B. 7*2%
C. 10*8%
D. 21*6%
Answer: A


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