Complete problem: Required Rate of Return

Show your work.

Suppose rRF $=5\%,$ rM $=10\%,$ and rA $=12\%.$

Calculate Stock A$\text{'}$s beta.

If Stock A$\text{'}$s beta were $2\mathrm{.}0,$ then what would be A$\text{'}$s new required rate of return?