Question: Problem 12-11 CAPM and Expected Return (LO2) The risk-free rate is 5% and the expected rate of return on the market portfolio is 12%.

Problem 12-11 CAPM and Expected Return (LO2) The risk-free rate is 5%

Problem 12-11 CAPM and Expected Return (LO2) The risk-free rate is 5% and the expected rate of return on the market portfolio is 12%. a. Calculate the required rate of return on a security with a beta of 1.35. (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.) Required return %

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