Question: 24. A stock analyst computes that the average long-term return of the broader stock market is 9.5%. The analyst also believes the relevant long term

24. A stock analyst computes that the average long-term return of the broader stock market is 9.5%. The analyst also believes the relevant long term risk free (treasury) rate to be used to value stocks is 5%. If a stock has a beta of 1.4, using the CAPM model, what is the stock's required rate of return? a. 10% b. 9.3% c. 5% d. 11.3%

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