Question: Using the formula for the security market line, if the risk-free rate is 6%, the market rate of return is 12%, the standard deviation is

Using the formula for the security market line, if the risk-free rate is 6%, the market rate of return is 12%, the standard deviation is 8% and the beta is 1.8, what is the anticipated return on the security?

A. 13.2%

B. 10.8%

C. 14.8%

D. 12.8%

E. 10.%

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