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Problem 8-5 Beta and required rate of return A stock has a required return of 11%; the risk-free rate is 4.5%; and the market risk

Problem 8-5 Beta and required rate of return

A stock has a required return of 11%; the risk-free rate is 4.5%; and the market risk premium is 4%.

A.) What is the stock's beta? Round your answer to two decimal places.

1.63

B.) New stock's required rate of return will be ___%? Round your answer to two decimal places.

- Got part A, need part B.

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