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Company A has a beta of 1 . 2 0 , while Company B ' s beta is 0 . 6 5 . The required

Company A has a beta of 1.20, while Company B's beta is 0.65. The required return on the stock market is 7.25%, and the risk-free rate is 3.15%. 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.
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