The market price of a security is $32. Its expected rate of return is 8%. The risk-free rate is 4%, and the market risk premium is 7%. What will the market price of the security be if its beta doubles (and all other variables remain unchanged)

Mikkelson corporation's stock had a required return of 12.50% last year, when the risk-free rate was 3% and the market risk premium was 4.75%. then an increase in investor risk aversion caused the market risk premium to rise by 2%. the risk-free rate and the firm's beta remain unchanged. what is the company's new required rate of return? (hint: first calculate the beta, then find the required return.) do not round your intermediate calculations.