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Choose the correct answer for the following question: A company's beta is 1.7. The risk-free rate is 3.5% and the market risk premium is 6.9%.

Choose the correct answer for the following question:

A company's beta is 1.7. The risk-free rate is 3.5% and the market risk premium is 6.9%. What is the cost of equity according to the CAPM?

A. 13.99%

B. 15.23%

C. 16.47%

D. 17.41%

E. 18.95%

EXPLAIN

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