(Required rate of return using CAPM) a. Compute a fair rate of return for Intel common stock, which has a 1.5 beta. The risk-free rate is 8 percent, and the market portfolio (New York Stock Exchange stocks) has an expected return of 12 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 96 Round to two decimal places. b. Why is the rate you computed in part (a) a fair rate? (Select the best choice below.) 0 A. The computed 14.00% is a fair rate because it compensates the investor for the time value of money and for assuming risk. O B. The computed 14.00% is a fair rate because it does not compensate the investor for the time value of money and for assuming risk