Beta coefficient

Given the following information, determine the beta coefficient for Stock J that is consistent with equilibrium: r_J = 9%; r_RF = 3.45%; r_M = 10%. Round your answer to two decimal places.

Required rate of return

Stock R has a beta of 2.5, Stock S has a beta of 0.45, the expected rate of return on an average stock is 12%, and the risk-free rate of return is 6%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.

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