$($Expected rate of return using CAPM$)$

a$.$ Compute the expected rate of return for Intel common stock, which has a $1\mathrm{.}2$ beta. The risk$-$free rate is $5$ percent and the market portfolio $($composed of New York Stock Exchange stocks$)$ has an

expected return of $14$ percent.

b$.$ Why is the rate you computed the expected rate?

a$.$ The expected rate of return for Intel common stock is

$\%.($Round to one decimal place.$)$