Riskier stock exceed required return on less risky stock

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Reference no: EM13850369

Stock R has a beta of 1.3, Stock S has a beta of 0.4, the expected rate of return on an average stock is 11%, and the risk-free rate of return is 3%. By how much does the required return on the riskier stock exceed the required return on the less risky stock?

Reference no: EM13850369

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