QUESTION $10$

Pasteur Inc. $($PI$)$ common stock has a beta of $1\mathrm{.}2.$ If the expected return on the market is $13$ percent and the risk$-$free rate is $6$ percent, what is the required rate of return for PI$?$

A$.$

$9\mathrm{.}60\%$

B$.$

$10\mathrm{.}80\%$

C$.$

$12\mathrm{.}00\%$

D$.$

$13\mathrm{.}20\%$

E$.$

$14\mathrm{.}40\%$

F$.$

$15\mathrm{.}60\%$

G$.$

$16\mathrm{.}80\%$

H$.$

$18\mathrm{.}00\%$