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Question

Stock R has a beta of 0.81, Stock S has a beta of 1.93, the expected rate of return on an average stock is 12.68%, and the risk-free rate is 5.80%. By how much does the required return on the riskier stock exceed that on the less risky stock?

The answers are one of the following:

9.09%

9.32%

6.24%

8.09%

7.71%

 

Solution
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Finance 4 Months Ago 17 Views
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