The volatility of the market portfolio is $10\%,$ the expected return on the market is $12\%,$ and the risk$-$free rate of interest is $4\%.$

Firm Volatility Correlation with market portfolio

Tagggart Transcontinental $14\%0\mathrm{.}7$

Wyatt Oil $18\%0\mathrm{.}6$

Rearden Metal $15\%0\mathrm{.}5$

The expected return for Rearden Metal is closest to:

$8\%$

$17\%$

$10\%$

$14\%$