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Expected rate of return on an average stock

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Stock R has a beta of 1.4, Stock S has a beta of 0.85, the expected rate of return on an average stock is 10%, and the risk-free rate is 4%. By how much does the required return on the riskier stock exceed that on the less risky stock? Do not round intermediate calculations. Round your answer to two decimal places.

Reference no: EM132487720

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