The market risk premium is 15% and the risk-free rate is 5%. The beta of Asset D is 0.2. What is Asset D’s expected return under the CAPM?

The market risk premium is 15% and the risk-free rate is 5%. The beta

1.	The market risk premium is 15% and the risk-free rate is 5%. The beta of Asset D is 0.2. What is Asset D’s expected return under the CAPM?
A.	8%
B.	20%
C.	7%
D.	30%
Answer» B. 20%