3. Problem 8.0 (Beta and Required Rate of Return) ebook Astock has a required return of 13, the risk tret rate a 7.5%, and the market risk premium is 5% What is the stock's beta? Round your answer to two decimal places b. If the market risk premium increased to 8%, what would happen to the stock's required rate of return? Assume that the risk-free rate and the beta remain unchanged. Do not round intermediate calculations. Round your answer to two decimal places 1. If the stock's beta is equal to 1.0, then the change in required rate of return will be greater than the change in the market is premium 11. If the stock's beta is equal to 1.0, then the change in required rate of return will be less than the change in the market risk premun II. If the stock's beta is greater than 1,0, then the change in required rate of return will be greater than the change in the marketiak premium IV. If the stock's beta is less than 1.0, then the change in required rate of return will be greater than the change in the market risk premium V. If the stock's beta is greater than 1,0, then the change in required rate of return will be less than the change in the market is premium Select Stock's required rate of return will be Grade it Now Save & Continue Continue without saving Suppose you are the money manager of a $4.46 million investment fund. The fund consists of four stocks with the following investments and betas Stock Investment Beta $ 580,000 1.50 B 800,000 (0.50) 1.080,000 1.25 0 2,000,000 0,75 If the market's required rate of return is 13% and the risk-free rate is 5%, what is the funds required rate of return? Do not round Intermediate calculations. Round your answer to two decimal places