The risk-free rate and the expected market rate of return are 0.056 and 0.125, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on a security with a beta of 1.25 is equal to

The risk-free rate and the expected market rate of return are 0.056 an

1.	The risk-free rate and the expected market rate of return are 0.056 and 0.125, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on a security with a beta of 1.25 is equal to
A.	0.142
B.	0.144.
C.	0.153.
D.	0.134
Answer» B. 0.144.