How much does the required return on the riskier stock


Response to the following problem:

Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average stock is 13 percent, and the risk-free rate of return is 7 percent. 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 Accounting: How much does the required return on the riskier stock
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