Estimated in her original analysis

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Recently, Kellie determined that required rate of return for Stock Q is 11%. In her analysis, she determined that the risk-free rate of return, rRF is 4% and that the required return on the market portfolio, rMP is 9%. Today, however, Kellie received new information that indicates the market risk premium, RPm is actually 1% higher than she estimated in her original analysis. Based on this new information, what should be the required rate of return for stock Q?

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Reference no: EM131401563

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