Please use the following scenario to answer question 16 and question 17. Suppose the market return is 10%, and the risk free rate is 1.2%. Moreover , suppose the Beta of Home Depot stock is 0.87. What is the market risk premium in the above scenario ? A. 8.8 %

What is the expected return or required rate of return) on Home Depot's stock according to the CAPM? Recall: Suppose the market return is 10, and the risk free rate is 1.2. Moreover, suppose the Beta of Home Depot stock is 0.87