Stock Z has a beta of 1.4, and its required rate of return is 10.00%. Stock B's beta is 0.80. If the risk-free rate is 4.00%, what is the required rate of return on Stock B? Group of answer choices 7.43% 7.06% 5.94% 7.95% 6.69%

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Stock Z has a beta of 1.4, and its required rate of return is 10.00%. Stock B's beta is 0.80. If the risk-free rate is 4.00%, what is the required rate of return on Stock B?

Group of answer choices
7.43%
7.06%
5.94%
7.95%
6.69%
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