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( Required rate of return using CAPM ) a . Compute a fair rate of retum for Intel common stock, which has a 1 .

(Required rate of return using CAPM)
a. Compute a fair rate of retum for Intel common stock, which has a 1.7 beta. The risk-free rate is 6 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 14 percent.
b. Why is the rate you computed a fair rate?
a. Using the CAPM, the fair rate of return for Intel common stock is
%.(Round to two decimal places.)
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