About the required rate of return

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Required Rate of Return

Stock R has a beta of 2.0, Stock S has a beta of 0.45, the expected rate of return on an average stock is 12%, and the risk-free rate is 3%. 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? Round your answer to two decimal places.

Reference no: EM131047481

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