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Stock A's stock has a beta of 1.30, and its required return is 14.00%. Stock B's beta is 0.80. If the risk-free rate is 4.75%,

Stock A's stock has a beta of 1.30, and its required return is 14.00%. 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?

Select the correct answer.

a. 10.40%

b. 10.42%

c. 10.44%

d. 10.46%

e. 10.48%

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