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HR Corporation has a beta of 2.0, while LR Corporation's beta is 1.4. The risk-free rate is 7%, and the required return on the market
- HR Corporation has a beta of 2.0, while LR Corporation's beta is 1.4. The risk-free rate is 7%, and the required return on the market risk is 13%. What will be the difference in required returns on HR's and LR's stocks?
| a. | 1.0% |
| b. | 3.6% |
| c. | 4.8% |
| d. | 5.2% |
| e. | 6.0%
|
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Personal Finance
Authors: E. Thomas Garman, Raymond Forgue
9th Edition
0618938737, 978-0618938735
