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Required Rate of Return Suppose r RF = 3%, r M = 8%, and r A = 7%. Calculate Stock A's beta. Round your answer

Required Rate of Return

Suppose rRF = 3%, rM = 8%, and rA = 7%.

  1. Calculate Stock A's beta. Round your answer to one decimal place.

  2. If Stock A's beta were 1.4, then what would be A's new required rate of return? Round your answer to one decimal place.

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