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Question 9 Herb Inc.'s stock has a beta of 1.10, and its required return is 9.0%. Biggers Corp's stock has a beta of 0.80. If

Question 9

Herb Inc.'s stock has a beta of 1.10, and its required return is 9.0%. Biggers Corp's stock has a beta of 0.80. If the risk-free rate is 4.00%, what is the required rate of return on Bigger's stock?

		a. 6.9%
		b. 7.6%
		c. 8.4%
		d. 9.3%
		e. 10.5%

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