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The risk-free rate is 5% and the expected market risk premium is 10%. A portfolio manager is projecting a return of 12%. The portfolio has a beta of 0.7, and the market beta is 1.0. After adjusting for risk, this portfolio is expected to:
A
equal the performance predicted by the CAPM.
B
outperform the CAPM return.
C
underperform the CAPM return.
D
unable to determine based on the information provided.