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MAX, Inc. common stock has a beta of 0.50 The expected return on the market is 12 percent, and the risk-free rate is 5 percent.

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MAX, Inc. common stock has a beta of 0.50 The expected return on the market is 12 percent, and the risk-free rate is 5 percent. The MAX common stock is actually expected to earn an annual rate of return of 13 percent. If the return on the market increased by 3%, what change would you expect in the return for MAX common stock? Select one: a. 5% O b. 13% C. 8.5% O d. 1.5%

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