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Question 32 (3 points) Company A has a beta of 1.45, while Company B has a beta of 0.85. The required return on the stock

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Question 32 (3 points) Company "A" has a beta of 1.45, while Company "B" has a beta of 0.85. The required return on the stock market is 12.00%, and the risk-free rate is 5.00%. What is the difference between Company "A" and Company "B" required rates of return? (Hint: First, find the market risk premium, then find required returns on the stocks.) a) 4.05% b) 3.90% c) 3.60% d) 4.20%

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