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9. Chapter b Multiple Choice 08-133, Section b Multiple Choice 08-133, Problem b Multiple Choice 0s-133 Stock A's stock has a beta of 1.30, and

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9. Chapter b Multiple Choice 08-133, Section b Multiple Choice 08-133, Problem b Multiple Choice 0s-133 Stock A's stock has a beta of 1.30, and its required return is 13.75%. Stock B's beta is 0.80. If the risk-free rate is 2.75%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.) Do not round your intermediate calculations a. 9.33% b. 10.66% c. 11.33% 0 d. 0.57% e-9.52% 4. 5 6 8 9 2 3

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