Suppose the risk free rate6 required return on the market, Ask an Expert

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Suppose the risk free rate=6%, required return on the market =11% and the required return on the stock is 14%.

Please calculate beta of the stock from the information above.

If the beta of the stock increased to 1.90, what would be the stock’s new required rate of return? Why are the two returns not proportional, or are they?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M93041965

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