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Mulrin's stock has a beta (b j ) of 1.25, its required return (E(R j )) is 15.25%, and the risk-free rate (R f )

Mulrin's stock has a beta (bj) of 1.25, its required return (E(Rj)) is 15.25%, and the risk-free rate (Rf) is 3.25%. What is the required rate of return on the market (E(RM))? [Use the CAPM]

12.00%

15.45%

12.20%

9.60%

12.85%

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