What will happen to each of the stocks required rates of


If Stock A has a beta of 1.2 and a standard deviation of returns of 18% and Stock B has a beta of 1.8 and a standard deviation of returns of 18% and the market risk premium increases, what will happen to each of the stocks required rates of return? Will one go up more than the other? Will they stay the same? Why?

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Finance Basics: What will happen to each of the stocks required rates of
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