Several years ago, the Value Line Investment Survey reported the following market betas for the stocks of selected healthcare providers: Company Beta Quorum Health Group .90 Beverly Enterprises 1.20 HEALTHSOUTH Corporation 1.45 United Healthcare 1.70 At the time these betas were developed, reasonable estimates for the risk-free rate, FR, and required rate of return on the market, R(Rm) were 6.5 % and 13.5 %, respectively.
a. What are the required rates of return on the four stocks?