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A stock has a beta of 125 what is the required rate of

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A stock has a Beta of 1.25. What is the required rate of return for the stock if the market risk premium is 8% and risk free rate is 2%? Given that the stock is trading at $115 today, what would you expect the stock price to be one year from (ignore dividends)?

a. 12% , $128.8

b. 10% , $126.5

c. 12%, $115

d. Insufficient information

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Finance Basics: A stock has a beta of 125 what is the required rate of

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