The risk free rate is 5 percent. the expected return of the market portfolio is 10% and the volatility of the market portfolio return is 12%. The volatility of IBM stock return is 16%. According to capital asset pricing model, the expected return of ibm is

A) 11.67%

B) 10%

C)8%

D) Not enough information is provided

Consider the CAPM. The risk free rate is 5%. The market portfolio has an expected return of 10%. Stock Z has a beta which is less than 0. The expected return of stock Z should be

A) greater than 5% but less than 10%

B) less than 5%

C) Greater than 10%

D) Not enough information is provided