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Click here to read the book The tolatlan hp tween Rhik and Rates of Retum BETA AND REQUIRED RATE OF RETURN A stock has a

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Click here to read the book The tolatlan hp tween Rhik and Rates of Retum BETA AND REQUIRED RATE OF RETURN A stock has a toured return et 11 the lakeme rate is 5., atid the market Hak promlum be 4 2. What is the stocks beta? Round your answer to two decimal places bu if the market risk premium increased to 8%, what would happen to the stock's required rate of return? Aduine that the like free rate and the beta remain unchanged. 1. If the stocks beta is greater than 1,0, then the change in required rate of return will be less than the change in the market rink premium 11. If the stock but is equal to 10, then the change in required rate of return will be greater than the change in the market is premium . If the stockbet is equal to 1.0, then the change in required rate of return will be less than the change in the market is premium IV. the stock but is greater than 10, then the change in required rate of return will be greater than the change in the market rok premium V. If the stock's but is less than 1.0. then the change in required rate of return will be greater than the change in the market rok premium New stocks required rate of return will be Round your answer to two decimal place

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