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Company A has a beta of o.70, while Company B's beta is 1.05. The required retum on the stock market is 1100, and the risk.
Company A has a beta of o.70, while Company B's beta is 1.05. The required retum on the stock market is 1100, and the risk. free nate ia 4.25k. Wat is the difference between A's and B's required rates of return? (Hint: First find the market risk premium, then find the required retarma ca the sluck) Select the correct answer. a. 2.38% b. 2.40% c. 2.42% d. 2.440 e. 2.36%
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