MacLeod Inc.’s stock has a beta of 1.0 and a required rate of return of 0.12. If the expected rate of return of the U.S. government T-bill is 0.05,
MacLeod Inc.’s stock has a beta of 1.0 and a required rate of return of 0.12.
If the expected rate of return of the U.S. government T-bill is 0.05, what is the expected rate of return of the market index according to the Capital Asset Pricing Model?