Maneesh 03 May 2020 at 14:22 PM

A stock has an expected return of 16% using the capital asset pricing model (CAPM). If the expected rate of return on the market is 12%, and the risk-free rate of return is 4%, what is the beta (β) coefficient of this stock?
A) 3
B) 2
C) 1.5
D) 0.75