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Stock A's stock has a beta of 1.30, and its required return is 10.50%. Stock...

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Finance

Stock A's stock has a beta of 1.30, and its required return is 10.50%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.)

Select the correct answer.

a. 8.23%
b. 8.26%
c. 8.29%
d. 8.32%
e. 8.35%

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