The Risk-Free Rate and the Expected Market Rate of Return

The risk-free rate and the expected market rate of return are 0.06 and 0.12, respectively. According to the capital asset pricing model (CAPM) , the expected rate of return on security X with a beta of 1.2 is equal to

A) 0.06.
B) 0.144.
C) 0.12.
D) 0.132.
E) 0.18.