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Stock A has a beta of 1.30, and its required return is 12.50%. Stock B's beta is 0.80. If the risk-free rate is 2.75%, what

Stock A has a beta of 1.30, and its required return is 12.50%. Stock B's beta is 0.80. If the risk-free rate is 2.75%, 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. 9.38%
b. 7.50%
c. 8.75%
d. 9.75%
e. 8.24%

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