Given a risk-free rate of return of 3.5 percent, a beta of 1.2, and a return...

Question:

Given a risk-free rate of return of 3.5 percent, a beta of 1.2, and a return on the market portfolio of 14 percent, what is the required rate of return using the CAPM?

a. 14.8%

b. 18.2%

c. 16.1%

d. 13.4%

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