Question: please explain step bu step how this was calculated If rRF=7%,rM=12%, and b=1.2, what is the required rate of return on the firm's stock? rs=rRF+(rMrRF)b=7%+(12%7%)1.2

please explain step bu step how this was calculated please explain step bu step how this was calculated If rRF=7%,rM=12%, and

If rRF=7%,rM=12%, and b=1.2, what is the required rate of return on the firm's stock? rs=rRF+(rMrRF)b=7%+(12%7%)1.2

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