Stock A's stock has a beta of 1.30, and its required return is 13.75%. Stock...
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Stock A's stock has a beta of 1.30, and its required return is 13.75%. Stock B's beta is 0.80. If the risk-free rate is 2.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.) Do not round your intermediate calculations.
| a. | 11.33% | |
| b. | 10.66% | |
| c. | 9.52% | |
| d. | 9.33% | |
| e. | 8.57% |
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