Green Company stock has a beta of 2 and a required return of 23%, while Gold Company stock has

a beta of 1.0 and a required return of 14%. The standard deviation of returns for Green Company is
10% more than the standard deviation for Gold Company.

The expected return on the market
portfolio according to the CAPM is
A) 9%. B) 14%. C) 10%. D) 12%.

B