White Company Stock Has a Beta of 2 and a Required

Multiple Choice

White Company stock has a beta of 2 and a required return of 23%,while Black Company stock has a beta of 1.0 and a required return of 14%.The standard deviation of returns for White Company is 10% more than the standard deviation for Black Company.The expected return on the market portfolio according to the CAPM is

A) 9%.
B) 10%.
C) 12%.
D) 14%.