How to find the rate of return? I have this question Magee Company's stock has a beta of 1.20, the risk -free rate is 4.50% and the market risk premium is 5.00% What is Magee's required return.

rate of return= 4.50%+(5.00%-4.50%)x1.20=.510 or 5.10 the correct ans is 10.50% hpw was this calculated.