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A stock has a required return of 13%, the risk-free rate is 3.5%, and the market risk premlum is 4%. a. What is the stock's

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A stock has a required return of 13%, the risk-free rate is 3.5%, and the market risk premlum is 4%. a. What is the stock's beta? Round vour answer to troo decimal places b. If the murket risk premium incressed to 6%, what wowld happen to the stock' required rate of retum? Assume that the risk free rate and the beta remain unchanged. Do not round intermediate calculations. Round veur answer to two decimal places. 11. If the stock's beta is eoval to 1.0 , then the change in required rute of retien wir be less than the change in the market rick premum. 111. If the stock's beta is preater than 1.0 , then the chanse in required rate of return wal be grester ban the chave in the market riak premam. IV. If the stock's beta is less than 1.0, then the change in required rate of return wil be preater than the change in the market risk premium. Scocks required rate of retturn will be 4

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