Stock A has a beta of 0.7, whereas Stock B has a beta of 1.3. Portfolio P has 50% invested in both A and B. Which of the following would occur if the market risk premium increased by 1% but the risk-free rate remained constant?   a. The required return on Portfolio P would increase by 1%.     b. The required return on Stock A would increase by more than 1%, while the return on Stock B would increase by less than 1%.     c. The required return on both stocks would increase by 1%.     d. The required return on Portfolio P would remain unchanged.     e. The required return for Stock A would fall, but the required return for Stock B would increase.

Stock A has a beta of 1.30, and its required return is 13.25%.  Stock B's beta is 0.90.  If the risk-free rate is 4.75%, what is the required rate of return on B's stock?  (Hint:  First find the market risk premium.)

A stock has a required return of 10%; the risk- free rate is 3.5%, and the market risk premium is 4%. a. What is the stock's beta? b. If the market risk premium increased to 10%, what would happen to the stock's required rate of return?

Stock A's stock has a beta of 1.30, and its required return is 13.75%. Stock B's beta is 0.80. If the risk-free rate is 2.75%, what is the required rate of return on B's stock? Do not round your intermediate calculations.