QUESTION $14$

A stock's beta equals $1\mathrm{.}4,$ the risk$-$free rate of return is $1\mathrm{.}5\%$ and the market return is $7\mathrm{.}2\%.$ Calculate the return that should be required on the stock according to the CAPM equation.

$9\mathrm{.}08\%$

$10\mathrm{.}43\%$

$7\mathrm{.}98\%$

$8\mathrm{.}64\%$

none of these responses