Question $25$

$1pts$

The beta of Ricci Co$.\text{'}$s stock is $1\mathrm{.}2,$ whereas the risk$-$free rate of return is $8$ percent. If the expected return on the market is $16$ percent, then what is the expected return on Ricci Co$.?$

$30\mathrm{.}1\%$

$11\mathrm{.}5\%$

$7\mathrm{.}70\%$

none of these

$8\mathrm{.}5\%$