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Question - Stock A's stock has a beta of 1.30, and its required return is 10.75%. 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?
a. 8.37%
b. 8.51%
c. 8.44%
d. 8.58%
e. 8.65%
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