(Answered) Within the context of the capital asset pricing model capm

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Within the context of the Capital Asset Pricing Model (CAPM), assume: Equity market risk premium = 5.2% Current risk free rate = 2.5% Historical average of the equity market return = 10% Beta of security = 1.9 Additional Country Risk Premium = 1.5% What would most likely be the cost of equity of this security?

A) 12.88%.

B) 13.88%.

C) 15.23%

D) 18.98%.

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