Difference required rates of return

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Company A has a beta of 0.70, while Company B's beta is 1.55. The required return on the stock market is 11.00%, and the risk-free rate is 2.25%. What is the difference between A's and B's required rates of return? (Hint: First find the market risk premium, then find the required returns on the stocks.) A. 4.99% B. 6.20% C. 6.71% D. 6.60% E. 5.74%.

Reference no: EM131927175

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