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In an effective marketing firm A has a beta of 1.3 and firm B has a beta of 1.9. Which of the following should investors
In an effective marketing firm A has a beta of 1.3 and firm B has a beta of 1.9. Which of the following should investors demand a higher required rate of return?
A) Firm A
B) Firm B
C) investor should require the same rate of return as it doesn't depend on beta
D) we cannot infer anything about the required rate of return from beta of the stock
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Cost Of Capital Applications And Examples
Authors: Shannon P. Pratt, Roger J. Grabowski, Richard A. Brealey
5th Edition
1118555805, 9781118555804
