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

Need the right option with clear handwriting QUESTION 18 Consider a stock

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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