Question $13$

$4$ pts

Suppose the CAPM holds. The risk$-$free rate is $2\%,$ and the expected return of the market portfolio is $8\%.$

Beta of Stock $A$ is $1\mathrm{.}5.$ Find out the expected return of Stock $A.$

$12\%$

$11\%$

$14\%$

$10\%$