D Question 13 5 pts The risk-free rate of return is estimated to be 2% p.a. The market return is estimated to be 7% p.a. The market risk premium is estimated to be 5% p.a. Company A has a Beta of 1.2 Company B has a Beta of 0.75 Using the Capital Asset Pricing Model (CAPM), calculate the Cost of Equity Capital for Company B and select the correct statement. Company B has a Cost of Equity Capital equal to 7.25% and is less risky than Company A Company B has a Cost of Equity Capital equal to 7.25% and is riskier than Company A Company B has a Cost of Equity Capital equal to 5.75% and is riskier than Company A O Company B has a Cost of Equity Capital equal to 5.75% and is less risky than Company A