The risk-free rate is 4%, and the market portfolio has an expected return of 14%. The market portfolio has standard deviation of 10%. Stock Z has a correlation coefficient with the market of 0.2 and a standard deviation of 15%. According to the CAPM, what is the expected rate of return on stock Z? If you believe stock Z has an expected return of 8%, what would your investment decision be based on the CAPM expected return? Select one: a. 4% b. 7% c. 10% d. Impossible to determine with this information.