Question: Need help with this problem Stock A's stock has a beta of 1.30, and its required return is 13.00%. Stock B's beta is 0.80. If

Need help with this problem

Stock A's stock has a beta of 1.30, and its required return is 13.00%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint:First find the market risk premium.)

Select the correct answer.

a. 9.88%b. 9.93%c. 9.83%d. 9.98%e. 10.03%

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