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A stock has a required return of 12%; the risk-free rate is 6%; and the market risk premium is 4%. If the market risk premium
A stock has a required return of 12%; the risk-free rate is 6%; and the market risk premium is 4%.
If the market risk premium increased to 10%, what would happen to the stock's required rate of return?
- New stock's required rate of return will be %. Round your answer to two decimal places.
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