Assuming a portfolio including the following three stocks and portfolio weights (MRK @ 50%, GOOG- 25% and HD- 25%), what should ones required return be for this portfolio using the Capital Asset Pricing Model?

Merck & Co. (MRK)- Beta= 0.80

Google Inc. (GOOG)- Beta= 1.38

Home Depot (HD)- Beta= 1.10

Assume that the 10 year Treasury bond yield is 1.40% (proxy for nominal risk-free rate) and the average return on the market, as measured by the S&P500 is 12.00%.

Round answer to nearest hundreth of percentage.