Required rate of returnstock r has a beta of 1 stock s has, Ask an Expert

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Required rate of return

Stock R has a beta of 1, Stock S has a beta of 0.65, the expected rate of return on an average stock is 13%, and the risk-free rate of return is 5%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.

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Financial Management, Finance

Category:- Financial Management
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