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1.The required rate of return for Stock X is 11 percent. The risk-free rate of return is 4 percent and that the required return on

1.The required rate of return for Stock X is 11 percent. The risk-free rate of return is 4 percent and that the required return on the market is 9 percent and the stock has a beta of 1.4.

Today, new information that indicates the market risk premium is 1 percent higher than previously estimate.

Based on this new information, what should be the required rate of return for Stock X?

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