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A stock you are holding has a beta of 2 . 0 and the stock is currently in equilibrium. The required rate of return on

A stock you are holding has a beta of 2.0 and the stock is currently in equilibrium. The required rate of return on the stock is 15% versus a required return on an average stock of 10%. Now the required return on an average stock increases by 20.0%(not percentage points). The risk-free rate is unchanged. By what percentage (not percentage points) would the required return on your stock increase as a result of this event?
Select the correct answer.
a.26.55%
b.26.71%
c.26.63%
d.26.59%
e.26.67%

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