Calculate the required return


Question1: Partridge Plastic's stock has an estimated beta of 1.4, and its required return is 13 percent. Cleaver Motors' stock has a beta of 0.8, & the risk-free rate is 6 percent. Calculate the required return on Cleaver Motors' stock?

[A] 12.0%

[B] 11.0%

[C] 10.0%

[D] 7.0%

[E] 10.4%

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Finance Basics: Calculate the required return
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