Company A has a beta of 0.9, while Company B's beta is 1.3. The required return on
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Company A has a beta of 0.9, while Company B's beta is 1.3. The required return on the stock market is 10%, and the risk-free rate is 4.05%. What is the difference between A's and B's required rates of return?
A)2.75%B)2.89%C)2.38%D)3.38%
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