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

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

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

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

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

The rate is fair and expected because the CAPM provides a theory of how risk and expected return are connected or traded off in the capital markets.

$($Select from the drop$-$down menu.$)$