Question: Need the right option with clear handwriting QUESTION 18 Consider a stock located exactly on the security market line (SML) (i.e., fairly priced according to
Need the right option with clear handwriting

QUESTION 18 Consider a stock located exactly on the security market line (SML) (i.e., fairly priced according to the CAPM). Currently, the market risk premium is 8% and the risk-free rate is 196. If the stock's expected return is 12.2%, what is the beta of the stock? Note: Write your answer in decimal (do not round any numbers)
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