By how much does the required return on the riskier stock


Stock V has a beta coefficient of 2.0, and stock W has a beta of 0.5. the expected rate of return on an average stock is 11 percent, and the risk free rate of return is 5 percent.

By how much does the required return on the riskier stock exceed the required return on the on the less risky stock?

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Financial Management: By how much does the required return on the riskier stock
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