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Stock A ' s stock has a beta of 1 . 3 0 , and its required return is 1 4 . 5 0 %

Stock A's stock has a beta of 1.30, and its required return is 14.50%. Stock B's beta is 0.80. If the risk-free rate is 4.75%, what is the required
rate of return on B's stock? (Hint: First find the market risk premium.)
Select the correct answer.
a.10.71%
b.10.73%
c.10.75%
d.10.77%
e.10.79%
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