Multiple Choice
Hocking Manufacturing Company has a beta of 0.65,while Levine Industries has a beta of 1.40.The required return on the stock market is 11.00%,and the risk-free rate is 4.25%.What is the difference between Hocking's and Levine's required rates of return? (Hint: First find the market risk premium,then find the required returns on the stocks.)
A) 4.34%
B) 4.57%
C) 4.81%
D) 5.06%
Correct Answer:
Verified
Correct Answer:
Verified
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