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Giambona Corporation's stock had a required return of 8 . 5 0 % last year when the risk - free rate was 2 . 5

Giambona Corporation's stock had a required return of 8.50% last year when the risk-free rate was 2.50% and the market risk premium was 4.00%. Then an increase in investor risk aversion caused the market risk premium to rise by 1% from 4.00% to 5.00%. The risk-free rate and the firm's beta remain unchanged. What is the company's new required rate of return?
a.9.00%
b.9.50%
c.10.00%
d.10.30%
e.10.80%

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