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A stock has a required return of 16%; the risk-free rate is 5.5%, and the market risk premium is 5%. a. What is the stock's

A stock has a required return of 16%; the risk-free rate is 5.5%, and the market risk premium is 5%.

a. What is the stock's beta? (Round to two decimal places)

b. If the market risk premium increased to 8%, what is the percentage of the new stock's required rate of return? (Round to two decimal places)

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