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Assume CAPM is a correct model. Stock A's required rate of return is 12% and Stock B's required rate of return is 10%. Beta of

Assume CAPM is a correct model. Stock A's required rate of return is 12% and Stock

B's required rate of return is 10%. Beta of Stock A is 1.2 and Beta of Stock B is 0.8.

What is the required rate of return of Stock C which has a beta of 1.52?

The required rate of return of Stock C is

(Please retain at least 4 decimals in your calculation and at least 2 decimals in the final

answer)

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