Question: Suppose the Treasury bond yield is 3% and the return on the S&P 500 is 10%. AT&T's stock price is $33.50. AT&T has a beta

Suppose the Treasury bond yield is 3% and the return on the S&P 500 is 10%. AT&T's stock price is $33.50. AT&T has a beta of 0.40 and a standard deviation of 3.5%. What should be the required rate of return on AT&T stock? A. 4.0% B. 5.8% C. 3.25% D. 6.4% E. 7.5%

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