$8-4$ Suppose $r_{RF}=5\%,r_M=12\%.$ What is the appropriate required rate of return for a stock that has a beta coefficient equal to $1\mathrm{.}5?$

$\sqrt[\phantom{2}]{8\mathrm{.}5}$ The current risk$-$free rate of return, $r_{RF},$ is $4$ percent and the market risk premium, $R{P}_M,$ is $5$ percent. If the beta coefficient associated with a firm's stock is $2\mathrm{.}0,$ what should be the stock's required rate of return?