Use the security market line to determine the required rate of return for the following firm's stock.The firm has a beta of 1.25,the required return in the market place is 10.50%,the standard deviation of returns for the market portfolio is 25.00%,and the standard deviation of returns for your firm is also 25.00%.
A) 13.13%
B) 10.50%
C) 31.25%
D) There is not enough information to answer this question.
Correct Answer:
Verified
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