S.Problem s.05 (Beta and Required Rate of Return) ellook stock has a required return of 7%, the rsk free rate is 3.5%, and the market risk premium is 3% What is the stock's beta? Round your answer to twe decimal places the market risk premium increased to 7%, what would happen to the steck's required rate of retarn? Assume that the risk free rate and the beta remain uchanged. De not round intermedate caloulatons Round your answer to teo decimal places 1 the stock's beta is greater than 1.0, then the change in required rate of return will be less than the change in the market risk premum 11 f the stock's beta is equal to 1.8, then the change in required rate f return wil be greater than the change in the market rik premium 1Im. If the stock's beta is equal to 1.0, then the change in required rate of return will be less than the change in the market risk premum Iv. I the stock's bets is greater than 1.0, then the change in required rate of retarn will be greaber than the change in the market risk premum v. the stock's beta is less than 1.0, then the change in required rate of return will be greater than the change in the market risk premim b. Ce Stock's required rate of return will be