( Required rate of return using CAPM )

a. Compute a fair rate of return for Intel common stock , which has a 1.3 beta. The risk-free rate is 7 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 & B please! Thank you!

(Required rate of rotum using CAPM) Computea far rate of return for Intel common stock, which has a 1.3 beto. The rise free rate is 7 percent, and the market portfolio (New York Stock Exchange stocks) has an expected retum of 14 percent b. Why is the rate you computed a fait rate? 2. Using the CAPM, the tale rate of tutum for Intel common stock is OK (Round to two decimal place)