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HR Industries (HRI) has a beta of 2.2, while LR Industries' (LRI) beta is 1.50. The risk- free rate is 3%, and the required rate

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HR Industries (HRI) has a beta of 2.2, while LR Industries' (LRI) beta is 1.50. The risk- free rate is 3%, and the required rate of return on an average stock is 10%. The expected rate of inflation built into tre falls by 1.0 percentage points, the real risk-free rate remains constant, the required return on the market falls to 9.0%, 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, THRI-TRI 4.41% 5.15% 5.39% 4.90% 4.66% You have been managing a $900,000 portfolio that has a beta of 1.50 and a required rate of return of 15%. The current risk-free rate is 3.00%. Assume that you receive another $100,000. If you invest the money in a stock with a beta of 3.2, what will be the required return on your million dollar portfolio? 17.996% 14.724% 17.178% 15.542% 16.360%

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