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Company A ' s stock has an estimated beta of 1 . 3 , and its required rate of return is 1 1 . 8

Company A's stock has an estimated beta of 1.3, and its required rate of return is 11.8
percent. Company Bs stock has a required rate of return of 13.0 percent. If the expected
return on the market is 10 percent, then determine the beta of Company Bs stock.

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