10. The security market line Assume that CAPM applies. Suppose that you know that the Stock of a company called "We thank you all for your patience" has a beta equal to 0.7 and a risk premium equal to 14%. The risk-free rate happens to be equal to 5%. What is the risk premium of the stock of another company called "We also thank you for your understanding" if it has a beta equal to 1.3? O a) 11.7% O b) 26.0% O c) 5.0% O d) 14.0% O e) 21.0% O f) None of the other alternatives is correct