Which of the following statement is correct?

a. the required rate of return is the return on an investment required by an investor given investment's risk.

b. the required rate of return is the return per dollar invested.

c. CAPM is a "snapshot" at one point in time (for security of different maturities)

d. the required rate of return has the lowest level of risk.

e. market risk can be diversified away by holding a well-diversified portfolio.

What is the value of JewelCo's $1.50 preferred stock if the appropriate required return rate is 25%?

a. $6.00

b. $1.20

c. $1.88

d. $7.50

e. none of the above