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Risk & Return: Scenarios: Probabilities: Returns: A 0.10 (0.10) B 0.10 0.02 C 0.40 0.05 D 0.25 0.07 E 0.15 0.14 CAPM: If the risk-free

Risk & Return: Scenarios: Probabilities: Returns: A 0.10 (0.10) B 0.10 0.02 C 0.40 0.05 D 0.25 0.07 E 0.15 0.14

CAPM: If the risk-free rate is 0.02, the return of the stock is 0.20, and the beta of the stock is 1.2, what is the return of the market?

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