Question: please assist with excel function or calculator QUESTION S5 The nsk-free rate is 6% Stock A has abeta of 10, Stock B has a beta
QUESTION S5 The nsk-free rate is 6% Stock A has abeta of 10, Stock B has a beta of2.0, and the positive. Which of the following statements is CORRECT? O Stock B's required rate of return is twice that of Stock A 0 If Stock A's required return is 11%, then the market risk premium is 5%. 2 po market risk premium, MTRF. is If Stock B's required return is 11%, then the market risk premium is 5%. If the risk-free rate increases but the market risk premium stays unchanged, Stock B's required return will increase by more than Stock A's O If the risk-free rate remains constant but the market risk premium increases, Stock A's required retum will increse by more than Stock B's
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