Stock A's stock has a beta of 1.30, and its required return is 13.50%. 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. 10.04%

b. 10.07%

c. 10.13%

d. 10.10%

e. 10.16%