Find Beta, and Determine the Required Rate of Return A) 1261%
B) 8

Multiple Choice

Find beta, and determine the required rate of return. The market risk premium is 12%, and the risk-free rate is 5%. ? $$\begin{array} { | l | l | } \hline \text { Comparative Returns in the Market } & \text { Returns on the Stock } \\\hline 8 \% & 4 \% \\\hline 9 \% & 10 \% \\\hline 2 \% & 1 \% \\\hline 10 \% & 6 \% \\\hline\end{array}$$

A) 12.61%
B) 8.27%
C) 10.11%
D) 14.84%