Question: Question 5 (3 points) A company stock has a beta of 1.0, its required return is 12.00%, and the risk-free rate is 5.00%. What is

 Question 5 (3 points) A company stock has a beta of

1.0, its required return is 12.00%, and the risk-free rate is 5.00%.

Question 5 (3 points) A company stock has a beta of 1.0, its required return is 12.00%, and the risk-free rate is 5.00%. What is the required rate of return on the stock market? (Hint: First find the market risk premium.) a) 12.50% b) 12.00% O c) 11.50% Od) 11.00%

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