The risk-free rate and the expected market rate of return are 6% and 16% respectively. According to the capital asset pricing model, the expected rate of return on security X with a beta of 1.2 is equal to .
A. 12%
B. 23%
C. 18%
D. 17%
The risk-free rate and the expected market rate of return are 6% and 16% respectively. According to the capital asset pricing model, the expected rate of return on security X with a beta of 1.2 is equal to .
A. 12%
B. 23%
C. 18%
D. 17%