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Company A has a beta of 0.50 , while Company B's beta is 1.90 . The required return on the stock market is 9.00%, and

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Company A has a beta of 0.50 , while Company B's beta is 1.90 . 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. 6.300% b. 9.450% c. 12.600% d. 5.625% e. 10.350%

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