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Suppose Jada Corps stock beta is 1.4. If the current market risk premium is 8% and the risk-free rate is 2%, what is Jada Corps

Suppose Jada Corps stock beta is 1.4. If the current market risk premium is 8% and the risk-free rate is 2%, what is Jada Corps required return?

10.40%

11.20%

14.00%

13.20%

None of these

The expected return of the S&P 500 Index is 10%. According to stock analysts, Ingrid Corp stock has an expected return of 15%. You should buy this stock if you believe the following:

You should buy the stock, regardless of the stocks beta.

You should never buy the stock.

Ingrid Corps beta is 2.1.

Not enough information given to make an informed decision.

Ingrid Corps beta is 1.6.

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