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Stock A has a beta of 1.30 , and its required return is 12.61%. Stock B's beta is 0.80 . If the risk-free rate is

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Stock A has a beta of 1.30 , and its required return is 12.61%. Stock B's beta is 0.80 . If the risk-free rate is 2.60%, what is the required rate of return on B's stock? (Hint: First find the market risk premium.) Do not round your intermediate calculations. a. 8.76% b. 7.70% c. 10.01% d. 8.28% e. 9.36%

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