Question: (Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH) Stock R has a beta of 1.5, Stock

(Please use a math, finance equation and/ or formula. DONT USE A SHEET CHART, EXCEL, OR GRAPH)

Stock R has a beta of 1.5, Stock S has a beta of .75, the required return on an average stock is 11%, and the risk-free rate of return is 4%. By how much does the required return on the riskier stock exceed the required return on the less risky stock?

4.65%

7.25%

5.87%

4.25%

5.25%

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