$7.$ The market price of a security is $$20.$ Its expected dividend at the end of the year $($D$1)$ is $$1\mathrm{.}50.$ The dividends are expected to grow at a constant rate of $4\%$ in the future. The stock has a beta of $1\mathrm{.}2.$ What is the rate of return investors should expect on this stock?$$

Question $7$ options:

$19\%$

$10\%$

$16\%$

$12\%$