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(INFORIMATION FOR THE NEXT QUESTIONS) The following information is available for CPA Company an investor for the current period: Market CMA Corp. CISA Corp. CMA

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(INFORIMATION FOR THE NEXT QUESTIONS) The following information is available for CPA Company an investor for the current period: Market CMA Corp. CISA Corp. CMA Corp. Required Rate of Return CISA Corp. Required Rate of Return Risk Free Rate Beta 1.0 1.25 0.60 10% ? 2% Required: If market return increased by 2%, what would be the new required rate of return for CISA Corp? a. 7% b. 8% c. 6% d. 2%

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