QUESTION $10$

Pasteur Inc. $($PI$)$ common stock has a beta of $1\mathrm{.}2.$ If the expected return on the market is $11$ 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$.18\mathrm{.}00\%$