Ch$.11$: CAPM

A stock has a beta of $0\mathrm{.}8,$ the expected return on the market is $8\mathrm{.}4$ percent, and the risk$-$free rate is $3\mathrm{.}8\%.$ What must the expected return on this stock be$?$

$\begin{array}{cc}\text{b}\text{e}\text{t}\text{a}& 0\mathrm{.}8\\ \text{e}\text{x}\text{p}\text{e}\text{c}\text{t}\text{e}\text{d}\text{r}\text{e}\text{t}\text{u}\text{r}\text{n}on\text{t}\text{h}\text{e}\text{m}\text{a}\text{r}\text{k}\text{e}\text{t}& 8\mathrm{.}4\%\\ \text{r}\text{i}\text{s}\text{k}-\text{f}\text{r}\text{e}\text{e}\text{r}\text{a}\text{t}\text{e}& 3\mathrm{.}8\%\end{array}$

Note: Enter your number with three decimals and without the percentage. That is$,$ if your answer is $20\mathrm{.}28\%,$ enter $203.$