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Stock exceed the required return on the less risky stock

Question:

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% and the risk-free rate of return is 7%. By how much does the required return on the riskier stock exceed the required return on the less risky stock?

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Finance Basics: Stock exceed the required return on the less risky stock

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Finance Basics: Stock exceed the required return on the less risky stock

Reference No:- TGS02047167

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