(Expected rate of return using CAPM) a. Compute the expected rate of retum for Intel common stock, which has a 1.5 beta. The risk-free rate is 5 percent and the market portfolio (composed of New York Stock Exchange stocks) has an expected return of 13 percent. b. Why is the rate you computed the expected rate? a. The expected rate of return for Intel common stock is \%. (Round to one decimal place.)

Q&A Education