The Historical Returns Data for the Past Four Years for Stock

Multiple Choice

The historical returns data for the past four years for Stock C and the stock market portfolio returns are: Stock C: 10%, 30%, 20%, 20%; Market Portfolio: 5%, 15%, 25%, 15%. If the risk-free rate of return is 5%, calculate the required rate of return on the Stock C using CAPM.

A) 5%
B) 10%
C) 15%
D) none of the above