18. The risk-free rate is 3.6% and you believe that the S&P 500's excess return will be 8% over the next year. If you invest in a stock with a beta of 1.2 (and a standard deviation of 30%), what is your best guess as to its expected excess return over the next year? Click the icon to see the Worked Solution. The expected excess return over the next year is %. (Round to two decimal places.) Review Only

18. The risk-free rate is 3.6% and you believe that the S8P 500 s excess roturn will be 8% over the next year. If you invest in a stock with a bota of 1.2 (and a standard deviation of 30% ), what is your best guess as to its expected excess retum over the next year? Review ony Click the lcon to see the Worked Solution. The expected excess return over the next year is \%. (Round to two decimal places.)