How much does the required return on the riskier stock

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Question: Stock R has a beta of 1.2, 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.

Reference no: EM133522285

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