Question: The expected return on the S&P 500 is 12% and the T-Bill rate is 4%. If a stock has a beta 1.2, standard deviation of

The expected return on the S&P 500 is 12% and the T-Bill rate is 4%. If a stock has a beta 1.2, standard deviation of 0.45, and dividend yield of 2%, what is its expected return according to the CAPM?

Group of answer choices

9.60%

13.60%

17.95%

18.40%

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