The beta of Stock Y is 0.5 (indicating that its returns rise when returns on most other stocks fall). If the risk-free rate is 5.3 percent and the expected rate of return on an average stock is 8.4 percent, what is the required rate of return on Stock Y?

a.1.55%

b.6.85%

c.9.50%

d.1.10%

e.3.75%