Question: Company A has a Beta 0f 0.70, while Company's B beta is 1.30. The required return on the stock market is 12.0%, and the risk-free

Company A has a Beta 0f 0.70, while Company's B beta is 1.30. The required return on the stock market is 12.0%, and the risk-free rate is 4.25%. What is the difference between A's and B's required rates of return?

A. 4.65%

B. 3.38%

C.3.05%

D. None of the Above

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