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Question 2 (4.3478 points) A Firm's stock has a required return of 13.00%, the risk-free rate is 7.00%, and the market risk premium is 4.00%.

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Question 2 (4.3478 points) A Firm's stock has a required return of 13.00%, the risk-free rate is 7.00%, and the market risk premium is 4.00%. Now suppose there is a shift in investor risk aversion, and the market risk premium increases by 2.00%. What is this Firm's new required return? A) 16.00% OB) 15.00% C) 17.00% D) 14.00% E) 18.00% Question 3 (4.3478 points) Saved A Firm's stock has a beta of 1.50, its required return is 16.00%, and the risk-free rate is 5.00%. What is the required rate of return on the stock ma OA) 11.33% OB) 12.00% OC) 11.00%

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