Stock exceed the required return on the less risky stock

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Reference no: EM131012313

Required rate of return Stock R has a beta of 1.3, Stock S has a beta of 0.6, the expected rate of return on an average stock is 12%, and the risk-free rate of return is 7%. 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. how would the calculations be computed

Reference no: EM131012313

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