A stock has a beta of 1.6, the expected return on the market is 10 percent, and the risk-free rate is 5.5 percent. What must the expected return on this stock be?

6 420 points A stock has a beta of 1.6, the expected return on the market is 10 percent, and the risk-free rate is 5.5 percent What must the expected return on this stock be? 12.7% 13.21% 21.5% O 12.06% o 13.33% References eBook & Resources Multiple Choice Learning Objective: 13-04 The security market line and the risk-return trade-of Difficulty: Basic Section: 137 The Security Market Line Check my work