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Required rate of return on the less risky stock

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Stock X has a beta coefficient of 2.0 and stock Y has a beta coefficient of 1.5. The expected rate of return on an average stock is 11% and the risk-free rate is 5%. By how much does the required rate of return on the riskier stock exceed the required rate of return on the less risky stock.

Reference no: EM132134749

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