Answer:
<u>13.2%</u>
Explanation:
As per Capital Asset Pricing Model (CAPM),
Expected Rate Of Return = 
wherein,
= Risk free rate of return on treasury bonds
B= Beta , which represents the degree of sensitivity of security return to the market return.
= Return on market portfolio
Thus, Expected rate of return of security X = 6 + 1.2(12 - 6)
= 13.2%
CAPM model is used for calculating expected rate of return. As per the model, the investors expect a risk premium represented by excess of rate of return of market portfolio over risk free rate , in addition for the risk free rate of return.
The risk premium serves as a compensation for investing in risky securities instead of risk free securities.
From this list, none are really the perfect solution to have a clear presentation but most likely it would be: C. Using a large font, since it will allow viewers from a long distance to be able to understand better.
Proportional tax is what we call the tax that is set
to be fixed, regardless of what an individual’s taxable base amount is. An example
of such a tax is sales tax, which remains the same for all income levels.