e. 25.18% Assume that the risk-free rate is 5%, which of the following statements is correct? a. If a stock's beta doubled, its required return would more than double. If a stock's beta were less than l 0, its required return would be less than 5%. If a stock's beta were 1.0, its required return would be 5%. If a stock's beta doubled, its required return would also double. Ifa stock has a negative beta, its required return would be less than 5%. b. c. d. e) 4 The real risk-free rate is 2.50%, investors expect a 3.50% future inflation rate, the market risk premiums 5.50% and Krogh Enterprises has a beta of 1.40 what is the required rate of return on Krogh's stock? (Hint: First find the market risk premium.) market risK premum -RPMrM-TRF 16.10% 14.50% 16.90% 15.30% 13.70% a. b. d. T. Martell Inc.'s stock has a 50% chance of producing a 30% return, a 35% chance of producing a 9% return, and a 15% chance of producing a-25% return. What is Martell's expected return? a. 17.6% Rob Beturn flob x Return 30 1 15-0 3 .2 3.8 251