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What is the required rate of return on clover stock

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Reference no: EM13284311

Parr Paper's stock has a beta of 1.40, and its required return is 13.00%. Clover Dairy's stock has a beta of 0.80. If the risk-free rate is 4.00%, what is the required rate of return on Clover's stock? (Hint: First find the market risk premium.)
Which answer is correct??
8.55%
8.71%
8.99%
9.14%
9.33%

Reference no: EM13284311

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