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Portec Plumbing's stock had a required return of 10.50% last year, when the risk.free rote was 5.50% and the market risk preminum was 475F. Then

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Portec Plumbing's stock had a required return of 10.50% last year, when the risk.free rote was 5.50% and the market risk preminum was 475F. Then an incteate in invato: ritk aversion caused the-marhet risk premium to rice by ak. The risk-free rate and the firm's beto romain unchanged. What is the compary's new required rate of retarm? (Hint: Fint calculate the beta, then find the requited roturn) Select the correct an wet. a. 12 . 56 b. 125) 612716 (ii. 12414 * 42,61k

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