Question 5 (1 point) Ben is working as an equity analyst at an investment company. One day he tries to estimate the expected return for IKON stock. Historical data suggests that this company has a beta of 2.5. The prevailing risk-free rate is 1.5%, and the market risk premium is estimated to be 7%. According to the Capital Asset Pricing Model, what is the expected return on this stock? Question 5 options:

a)

17.15%

b)

19.00%

c)

10.80%

d)

15.25%

e)

12.00%