Question $6$

$3$ pts

Suppose the beta of $xyz$ company, a deep value stock, is $0\mathrm{.}75,$ the risk$-$free rate is $2$ percent, and the expected market rate of return is $10$ percent. Calculate the expected rate of return. The best answer is :

$10\mathrm{.}5\%$

$8\mathrm{.}8\%$

$6\mathrm{.}5\%$

$8\mathrm{.}0\%$

$9\mathrm{.}5\%$