MNC Corporation has a beta of 2.0. The risk-free rate of interest is 5%, and the return on the stock market overall is expected to be 13%. What is the required rate of return on MNC stock?

MNC Corporation has a beta of 2.0. The risk-free rate of interest is 5

1.	MNC Corporation has a beta of 2.0. The risk-free rate of interest is 5%, and the return on the stock market overall is expected to be 13%. What is the required rate of return on MNC stock?
A.	21%.
B.	41%.
C.	16%.
D.	13%.
Answer» B. 41%.