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PV Corporation has a beta of 3.0, while PVA Corporation's beta is 2. The risk-free rate is 10%, and the required rate of return on

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PV Corporation has a beta of 3.0, while PVA Corporation's beta is 2. The risk-free rate is 10%, and the required rate of return on an average stock is 15%. Now the expected rate of inflation built into rr falls by 3 percentage points, the real risk-free rate remains constant, the required return on the market falls to 11%, and the betas remain constant. When all of these changes are made, what will be the difference in required returns on PV's and PVA's stocks? The numbers in the answer choices are percentages 6 4

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