You are holding a stock that has a beta of 3.37 and is currently in equilibrium. The required return on the stock is 31.84% and the return on a risk-free asset is 7.0%. What would be the return on the stock if the stock's beta increased to 4.68 while the risk-free rate and market return remained unchanged? 74.25% 41.49% 31.84%

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Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

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Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.