Using the information below, find the required rate of return using the CAPM formula then answer the respective questions.

Home Depot's current Beta is 1.24 per Yahoo Finance. Assume the risk-free rate is 5% and the expected market return is 12%. Does this expected return seem reasonable if the market as a whole is expected to make 12%? Is your stock riskier or less risky than the market?

R R R = (risk free rate of return + beta (market rate of return-risk free rate of return))