A stock you are holding has a beta of 20 and the stock is, Ask an Expert

Management Studies

A stock you are holding has a beta of 2.0 and the stock is currently in equilibrium. The required rate of return on the stock is 15% versus a required return on an average stock of 10%. Now the required return on an average stock increases by 30.0% (not percentage points). The risk-free rate is unchanged. By what percentage (not percentage points) would the required return on your stock increase as a result of this event?

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Business Management, Management Studies

Category:- Business Management
Reference No.:- M91260381

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