Required rate of returnbull stock rs beta 15bull stock ss, Ask an Expert

Finance

Required Rate of Return

• Stock R's beta = 1.5

• Stock S's beta = 0.75

Consider that the required return on an average stock is 14 percent. The risk-free rate of return is 6 percent. If this is so, the required return on the riskier stock exceeds the required return on the less risky stock by how much?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92677209

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