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Required Rate of Return Stock R has a beta of 1.6, Stock S has a beta of 0.85, the expected rate of return on an

Required Rate of Return

Stock R has a beta of 1.6, Stock S has a beta of 0.85, the expected rate of return on an average stock is 11%, and the risk-free rate is 7%. By how much does the required return on the riskier stock exceed that on the less risky stock? Do not round intermediate calculations. Round your answer to two decimal places.

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