Stock r has a beta of 20 stock s has a beta of 050 the

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Stock R has a beta of 2.0, Stock S has a beta of 0.50, the expected rate of return on an average stock is 11%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed the required return on the riskier stock exceed that on the less risky stock?

Reference no: EM13616682

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