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St. Louis Health Group has a beta of 1.5. St. Louis Global Health has a beta of 0.90. The required rate of return on the
St. Louis Health Group has a beta of 1.5. St. Louis Global Health has a beta of 0.90. The required rate of return on the stock market is 10.5%. The risk-free rate is 5%. By how much does St. Louis Health Group's required return exceed St. Louis Global Health's? (Hint: compare their CAPM results)
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