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HR Industries ( HRI ) has a beta of 2 . 2 , while LR Industries' ( LRI ) beta is 0 . 1 0
HR Industries HRI has a beta of while LR Industries' LRI beta is The riskfree rate is and the required rate of return on an average stock is The expected rate of inflation built into falls by percentage points, the real riskfree rate remains constant, the required return on the market falls to and all betas remain constant. After all of these changes, what will be the difference in the required returns for HRI and LRI, that is
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