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Company A has a beta of 0 . 7 0 , while Company B ' s beta is 1 . 4 0 . The required

Company A has a beta of 0.70, while Company B's beta is 1.40. The required return on the stock market is 9.00%, and the risk-free rate is 2.25%. What is the difference between A's and B's required rates of return? (Hint: First find the market risk premium, then find the required returns on the stocks.) Do not round your intermediate calculations.
a.6.975%
b.9.338%
c.6.300%
d.3.150%
e.4.725%
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