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What would be the new required return on the stock

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Question - You are holding a stock that has a beta of 2.72 and is currently in equilibrium. The required return on the stock is 18.98%, and the return on the market portfolio is 10.40%. What would be the new required return on the stock if the return on the market increased to 14.00% while the risk-free rate and beta remained unchanged?

Reference no: EM133039272

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