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6-12: Required Rate of Return Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on

6-12: Required Rate of Return

Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average stock is 13%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed that on the less risky stock?

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