Assume that the risk-free rate is 5% and that the rate of return on a balanced portfolio of common stocks is 9%.?

 It is8%.......................c) is the correct option.

1. The correct answer was: c.8%.

Thanks for the invitation,

I agree with the experts 

If a stock's beta is1.2, it's theoretically20% more volatile than the market.

So, the correct answer is (9-5)*2=8%

..............................c.8%....................................................................

c. is.............................. righttt ,,,,,,,,,,,,,,,,,.....................................

My answer is option (C) 8%

answer C8 %________________________________________________________