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

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Problem:

Company A has a beta of 0.70, while Company B's beta is 0.85. The required return on the stock market is 11.00%, and the risk-free rate is 2.25%.

Required:

Question: What is the difference between A's and B's required rates of return?

Note: Explain the solution in detail.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91174272

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