Required rate of returnstock r has a beta of 10 stock s has, Ask an Expert

Economics

Required Rate of Return

Stock R has a beta of 1.0, Stock S has a beta of 0.55, the expected rate of return on an average stock is 13%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed the required return on the riskier stock exceed that on the less risky stock? Round your answer to two decimal places.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91726858

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