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There are some less risky assets in the portfolio of XYT BhD company that can...

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Accounting

There are some less risky assets in the portfolio of XYT BhD company that can cause the beta value to decrease by 25% where the initial beta value is 1.50. Also stated, the required initial required rate of return is 13.90%. and the market risk premium is 7.40%. In addition, inflation is also expected to decline by 0.55%. Using the data provided, what is the stock's new required rate of return?

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