b

The common stock of Alibaba Group has a beta of 0.74 and an expected rate of return of 14.90%. Investors expect the return on the market portfolio this year to be 18.60%. Assuming that the risk-free rate does not change, what would be your expected return on Alibaba stock if the market portfolio return is 20.60%? a. 14.89% b. 21.29% c. 12.60% d. 10.96% e 16.38%