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8-17 Stock V has a beta coefficient of 2.0, and Stock W has a beta of 0.5. The expected rate of return on an average

  • 8-17

Stock V has a beta coefficient of 2.0, and Stock W has a beta of 0.5. The expected rate of return on an average stock is 11 percent, and the risk-free rate of return is 5 percent. By how much does the required return on the riskier stock exceed the required return on the less risky stock?

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