$($Required rate of return using CAPM$)$

a$.$ Compute a fair rate of retum for Intel common stock, which has a $1\mathrm{.}7$ beta. The risk$-$free rate is $6$ percent, and the market portfolio $($New York Stock Exchange stocks$)$ has an expected return of $14$ percent.

b$.$ Why is the rate you computed a fair rate?

a$.$ Using the CAPM, the fair rate of return for Intel common stock is

$\%.($Round to two decimal places.$)$