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) 9.33%
B) 9.52%
C) 10.66%
D) 11.33%
E) 8.57%
Correct Answer:
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