Several years ago, the Value Line Investment Survey reported the following market betas for the stocks of selected healthcare providers:

Company Beta

1.Quorum Health Group 0.90

2. Beverly Enterprises 1.20

3. Health South Coorporation 1.45

4. United Healthcare 1.70

At the time these betas were developed, reasonable estimates for the risk-free rate, RF, and required rate of return on the market, R(RM), were 6.5 percent and 13.5 percent, respectively. a. What are the required rates of return on the four stocks? b. Why do their required rates of return differ?