3 . The risk - free rate of return is 5.5 percent , the expected market return is !] percent , and the beta for Lea , Inc . is 0. 85 . What is Lea's required rate of return ?" A ) 4. 7 percent B ) 10. 2 percent C ) 14. 9 percent D ) 15 . 7 percent 4 . Intrinsic value is based on which of the following factors ?" I the applied discount rate* II . the amount of risk inherent in a particular stock . III historical net profits of the company IV . estimated future cash flows of the company A ) IT and IV only B ) I, II and III only C ) I, II and IV only D ) III III and IV