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How much does the required return on riskier stock exceed

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Reference no: EM133007044

Problem 1: Stock R has a beta of 2.5, Stock S has a beta of 0.35, the required return on an average stock is 11%, and the risk-free rate of return is 6%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.

Reference no: EM133007044

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