Question: IVIL.V0.134 Question 22 of 60 Company A has a beta of 0.70, while Company B's beta is 1.40. The required return on the stock market

IVIL.V0.134 Question 22 of 60 Company A has a beta of 0.70, while Company B's beta is 1.40. The required return on the stock market is 9.00%, and the risk-free rate is 2.25%. What is the difference between A's and B's required rates of return? (Hint: First find the market risk premium, then find the required returns on the stocks.) Do not round your intermediate calculations. O a. 9.338% b.3.150% c. 6.975% O d. 4.725% O e. 6.300%

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