Company A has a beta of 0.70, while Company B's beta is 0.95. The required...
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Company A has a beta of 0.70, while Company B's beta is 0.95. The required return on the stock market is 11.00%, and the risk-free rate is 4.25%6. What is the difference between A's and B's required rates of return? (Hint: First find the market risk premium, then find the required returns on the stocks.) Select the correct answer. O . 1.54% Ob 1.59% 1.64% d. 1.74% e. 1.69%
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