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Find what is the required rate of return on b stock

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Problem 1: Stock A's stock has a beta of 1.30, and its required return is 11.75%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.)

a. 9.03%
b. 9.09%
c. 9.06%
d. 9.12%
e. 9.15%

Reference no: EM132959924

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