Riskier stock exceed required return on less risky stock

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Reference no: EM132012198

Stock R has a beta of 1.1, Stock S has a beta of 0.9, the required return on an average stock is 10%, and the risk-free rate of return is 3%. 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: EM132012198

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