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Beta and required rate of return A stock has a required return of 8%; the risk-free rate is 3.5%; and the market risk premium is
Beta and required rate of return
A stock has a required return of 8%; the risk-free rate is 3.5%; and the market risk premium is 4%. If the market risk premium increased to 8%, what is the new stock's required rate of return. Round your answer to two decimal places.
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