According to CAPM theory (Capital Asset Pricing Model), if a stock has a beta of 1.5, the expected return on the overall market is 10% and the risk free rate is 3.2%, what would the expected return on the stock be?
a. 8.6 percent
b. 12.3 percent
c. 13.4 percent
d. 18.20 percent
e. Not enough information given