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Linke Motors has a beta of 1 . 3 0 , the T - bill rate is 3 . 0 0 % , and the

Linke Motors has a beta of 1.30, the T-bill rate is 3.00%, and the T-bond rate is 6.5%. The annual return on the stock market during the past 3 years was 15.00%, but investors expect the annual future stock market return to be 13.50%. Based on the SML, what is the firm's required return? Do not round your intermediate calculations.
16.22%
14.35%
18.41%
17.00%
15.60%

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