Question $5(2$ points$)$

Tech Firm has a beta of $1\mathrm{.}4.$ If the market risk premium is $5\%$ and the nominal riskfree rate of interest is $2\%,$ what should be the required rate of return on Tech Firm?

$11\mathrm{.}80\%$

$7\%$

$6\mathrm{.}20\%$

$9\%$