Riskier stock exceed that on the less risky stock

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Reference no: EM131013750

Stock R has a beta of 2.5, Stock S has a beta of 1.25, the expected rate of return on an average stock is 15%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed that on the less risky stock?

Reference no: EM131013750

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