Question $17(5$ points$)$

What is the return on the market portfolio $),$ when the risk$-$free rate $($rRF$)$ is $2\mathrm{.}4\%$

and the market is in equilibrium and if a stock has a beta of $1\mathrm{.}1$ and a required rate of

return of $11\mathrm{.}9\%?$

Show your answer to the nearest $.1\%$ using whole numbers $($e$.$g$.,$ enter $14\mathrm{.}1\%$ as

$14\mathrm{.}1$ rather than $\mathrm{.}141).$

Your Answer:

Answer