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What would be the return on the stock

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Reference no: EM131147829

You are holding a stock that has a beta of 2.54 and is currently in equilibrium.

The required return on the stock is 32.25%, and the return on a risk-free asset is 5.0%.

What would be the return on the stock if the stock's beta increased to 3.10 while the risk-free rate and expected market return remained unchanged?

Reference no: EM131147829

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