Required rate of rolum using CAPM) a. Compute a fair rate of return for Intel common stock, which has a 1.5 bota. The risk tree rate is 7 percent, and the market portfolio (New York Stock Exchange ocks) has an expected return of 14 percent b. Why is the rain you computed a fair rato? a. Using the CAPM, the fair rate of retum for Intel common stock is % (Round to two decimal places.) b. Why is the rate you computed in part (a) a fair rute? (Select the best choice below.) O A The computed 17.50% is a fair rate because it compensates the investor for the time value of money and for assuming risk OB. The computed 17.50% is a fair rate because it does not compensato the investor for the time value of money and for assuming nak