Suppose you have the following information on two stocks:

Stock Beta STD $($annual$)$ Forecast $($December $2020)$ Forecast $($December $202)$

You estimate that the risk$-$free rate is $2\mathrm{.}5\%,$ the expected market return is $9\%,$ and the market's standard deviation $($STD$)$ is $19\%.$

Assume the above foretasted dividends and stock price are for exactly one year from today.

What is the required rate of return for stock C and R according the Capital Asset Pricing Model $($CAPM$)?$

Select one:

a$.C=10\mathrm{.}95\%,R=5\mathrm{.}75\%$

b$.C=14\mathrm{.}20\%,R=7\mathrm{.}00\%$

c$.C=12\mathrm{.}45\%,R=8\mathrm{.}75\%$

d$.C=9\mathrm{.}55\%,R=6\mathrm{.}85\%$