Stock r has a beta of 25 stock s has a beta of 125 the


Stock R has a beta of 2.5, Stock S has a beta of 1.25, the expected rate of return on an average stock is 15%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed that on the less risky stock?

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Finance Basics: Stock r has a beta of 25 stock s has a beta of 125 the
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