(Required rate of rotum using CAPM) a. Compute a fair rate of retum for Intel common stock, which has a 1.2 beta. The risk-free rate is 2 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 11 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) b. Why is the rate you computed in part (a) a fair rato? (Select the best choice below.) OA. The computed 12.80% is a fair rate because it compensates the investor for the time value of money and for assuming risk. OB: The computed 12.80% is a fair rate because it does not compensate the investor for the time value of money and for assuming risk