A firm has a beta of $1\mathrm{.}50.$ Let the market risk premium be $8\%$ and the risk$-$free rate $2\%.$

Using the CAPM, what is the expected return of this stock? Recall the CAPM formula

is $E(r_i)=r_f+*[E(r_M)-r_f]$

$10\mathrm{.}4\%$

$14\mathrm{.}0\%$

$6\mathrm{.}4\%$

$8\mathrm{.}3\%$

None of the above.