Beau has been analyzing the common stock of Netflix, Inc. and has estimated its beta, b_N, to be +1.45. The risk-free return, r_RF, is 3.0% and the return on market, r_M, is 7.0%. Using the security market line equation, determine the required rate of return, r_N, for Netflix.

10.7%

9.6%

8.8%

11.6%