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1.) Pluto Intelligence has a beta of 0.7. Neptune Media has a beta equal to 1.4. The required return on the stock market is 11.5%,
1.) Pluto Intelligence has a beta of 0.7. Neptune Media has a beta equal to 1.4. The required return on the stock market is 11.5%, and the risk-free rate is 4.9%. What is the difference (in percent) between Pluto's and Neptunes's required rates of return (i.e., rNeptune-rPluto)?
2.) Amazon stock has a beta equal to 1.27. The expected rate of market return is 9.3% and the risk-free rate is 2.83%. What is Amazon's required rate of return?
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