Company a has a beta of 070 while company bs beta is 145, Ask an Expert

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Company A has a beta of 0.70, while Company B's beta is 1.45. The required return on the stock market is 11.00%, and the risk-free rate is 2.25%. What is the difference between A's and B's required rates of return? (Hint: First find the market risk premium, then find the required returns on the stocks.)

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Financial Management, Finance

Category:- Financial Management
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