(Expected rate of return using CAPM) a. Compute the expected rate of return for Intel common stock, which has a 1.4 beta. Exchange stocks) has an expected return of 12 percent. b. Why is the rate you computed the expected rae? The risk-free rate is 5 percent and the market portfolio (composed of New York Stook a. The expected rate of return for Intel common stock is %. (Round to one decimal place.) b. Why is the rate you computed the expected rate? The rate is fair and expected because the CAPM provides a theory of how risk and expected return are connected or traded off in the capital markets. (1) (Select from the drop-down menu.) (1) O False O True