5. Problem 3.05 (Beta and Required Rate of Return) eBook A stock has a required return of 14%, the risk tree rate is 5%, and the market risk premium is 3%. a. What is the stock's beta? Round your answer to two decimal place, b. If the market risk premium increased to 9%, what would happen to the stock's required rate of retum? Assume that the risk free rate and the bota remain unchanged. Do not round intermediate calculations. Round your answer to two decimal places. I. 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 rik premium. 11. If the stocks beta is equal to 1.0, then the change in required rate of return will be greater than the change in the market rik premium TIL. If the stocks beta is equal to 1.0. then the change in required rate of return will be less than the change in the market risk premium IV. If the stocks beta is greater than 1.0, then the change in required rute of return will be greater than the change in the market is premium. V. If the stocks beta is less than 1.0, then the change in required rate of return will be greater than the change in the market risk pemium -Select- 26 New stock's required rate of return will be