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Show your work, Stock C has a Beta of 1.5. Stock D has a Beta of 0.75. The expected rate of return on an average
Show your work,
Stock C has a Beta of 1.5. Stock D has a Beta of 0.75. The expected rate of return on an average stock is 13%, and the risk free rate is 7%.
What is the required return on the riskier stock?
What is the required return on the less risky stock?
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