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Suppose a stock has a beta of 1 . 3 , the risk - free rate is 6 . 0 % , and the market

Suppose a stock has a beta of 1.3, the risk-free rate is 6.0%, and the market risk premium is 4.5%. If the stock's beta falls to 1.0 but the other two variables remain unchanged, by how much would the stock's required rate of return decline?
a.0.62%
b.1.35%
c.0.88%
d.1.71%
e.2.28%
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