Using the securities market line sml in the context of the, Financial Management

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Using the securities market line sml in the context of the

Assume the following information about the market and JumpMasters' stock. JumpMasters' beta = 1.50, the risk-free rate is 3.50%. Te market risk premium, i.e. the market return in excess of the risk free rate is 10%. Using the Securities Market Line (SML) in the context of the CAPM, what is the Expected Return for JumpMasters' stock?

A. 13.50%

B. 27%

C. 7.50%

D. 18.50%

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