Question $21$

$4$ pts

Company A has a beta of $0\mathrm{.}75,$ while Company B$\text{'}$s beta is $1\mathrm{.}25.$ The required return on the stock market is $9\mathrm{.}00\%,$ and the risk$-$free rate is $4\%.$ What is the difference between A$\text{'}$s and $B\text{'}$s required rates of return?

$2\mathrm{.}75\%$

$3\mathrm{.}05\%$

$2\mathrm{.}50\%$

$3\mathrm{.}40\%$

$3\mathrm{.}20\%$