By how much does the required return on the riskier stock


Stock R has a beta of 2.5, Stock S has a beta of 0.65, the expected rate of return on an average stock is 11%, and the risk-free rate of return is 4%. By how much does the required return on the riskier stock exceed the required return 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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