The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on security X with a beta of 1.2 is equal to

The risk-free rate and the expected market rate of return are 0.06 and

1.	The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According to the capital asset pricing model (CAPM), the expected rate of return on security X with a beta of 1.2 is equal to
A.	0.06.
B.	0.144.
C.	0.12.
D.	0.132
Answer» E.