Question: A stack has a required return of 14%, the risk-free rate is 4.5%, and the market risk premium is 5%. a. What is the stock's

A stack has a required return of 14%, the risk-free rate is 4.5%, and the market risk premium is 5%. a. What is the stock's beta? Round your answer to two decimal places. not round intermediate calculations. Round your answer to two decimal places. 1. If the stock's beta is equal to 1.0 , then the change in required rate of return will be greater than the change in the market risk premium. II. If the stock's beta is equal to 1,0 , then the change in required rate of return will be less than the change in the market risk premilim. 111. If the stock's beta is greater than 1.0 , then the change in required rate of return will be greater than the change in the market risk premium. IV. If the stock's beta is less than 1.0 , then the change in required rate of return will be greater than the change in the market ritk premium. . If the stock's beta is greater than 1.0 , then the change in required rate of return wil be less than the change in the markht risk premium. Stock's required rate of return will be %

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