Stock r has a beta of 21 stock s has a beta of 045 the, Ask an Expert

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Stock R has a beta of 2.1, Stock S has a beta of 0.45, the expected rate of return on an average stock is 9%, and the risk-free rate is 5%. 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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Financial Management, Finance

Category:- Financial Management
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