What would be the new required return on the stock

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Reference no: EM131814707

1. You are holding a stock that has a beta of 1.50 and is currently in equilibrium. The required return on the stock is 19.31%, and the return on the market portfolio is 14.80%. What would be the new required return on the stock if the return on the market increased to 20.00% while the risk-free rate and beta remained unchanged?

2. Can you show me how to solve this? It doesn't necessarily have to be on Excel. You deposit $250 in a bank account that pays an interest rate of 5%, compounded quarterly. In excel, compute and graph how much your account balance will be at the end of each year for the next 15 years.

Reference no: EM131814707

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