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Required rate of return Stock R has a beta of 1.6, Stock S has a beta of 0.55, the required return on an average stock
Required rate of return Stock R has a beta of 1.6, Stock S has a beta of 0.55, the required return on an average stock is 8%, and the risk-free rate of return is 5%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places. %
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