12. Abbott Labs is 1.2, the expected return of Abbott Labs is: If the market risk premium is 7%, the risk free rate is 2%, and beta of the 9.4% b. 10.4% 11.4% d. 12.4% a. C. II. Chapter 12 (13 questions) 13. What is the Speed Bump Solutions Corporation's cost of equity capital? of Speed Bump Solutions is $20. Assume the risk-free rate is 1 percent and the expected return on the market is 7 percent. a. 9.45% b. 9.16% C. 8.26% d. 7.26% ic