In a world with risk free asset and risky assets, an investor's degree of risk aversion will determine his/her risky portfolio choice risk-free rate allocation between risk-free asset and optimal risky asset portfolio efficient frontier of risky asset portfolio 1.1 pts Question 12 Consider the CAPM. The market rate of return is 18%. The expected return on a stock with a beta of 1.2 is 20%. What is the risk-free rate? 12% 6% 8% 16%