Problem 11-13 Using CAPM [LO 4]

A stock has a beta of 1.21, the expected return on the market is 11.5 percent, and the risk-free rate is 4.7 percent.

Required:

What must the expected return on this stock be? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Expected return

%