By how much does the required return on the riskier stock


Question - Stock R has a beta of 2.2, Stock S has a beta of 0.55, the expected rate of return on an average stock is 12%, and the risk-free rate of return is 6%. By how much does the required return on the riskier stock exceed the required return on the less risky stock?

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Accounting Basics: By how much does the required return on the riskier stock
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