Stock A has a beta of 1.0 and very high unique risk. If the expected return on the market is 20%, then according to the CAPM the expected return on Stock A will be:

• A. the answer cannot be found without knowing Stock A’s correlation or covariance with the market.
• B. more than 20% because of Stock A’s very high unique risk.
• C. exactly 20%.
• D. the answer cannot be found without knowing the risk-free rate of interest.