Company A has a beta of 0.70, while Company B's beta is 1.10. The required return on the stock market is 9.00%, and the risk-free rate is 2.25%. What is the difference between A's and B's required rates of return? (Hint: First find the market risk premium, then find the required returns on the stocks.) Do not round your intermediate calculations.

Question 10Select one:

a.

2.70%

b.

3.02%

c.

2.78%

d.

2.59%

e.

2.46%