If Martin observes that the risk-free rate is 2% and the market risk premium is 5% then, according to the Capital Asset Pricing Model (CAPM), he knows that for a stock with a beta of 1.4, the required rate of return will be % 1) 9.00 2) 8.00 3) 8.50 4) None of the given answers for this question are within 0.05 points of the correct answer. 5) 9.50 6) 10.0