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Stock A has a beta of 1 . 6 , Stock B has a beta of 0 . 6 , the expected rate of return

Stock A has a beta of 1.6, Stock B has a beta of 0.6, the expected rate of return on an average stock is 12 percent, and the risk-free rate of return is 7 percent. By how much does the required return on the riskier stock exceed the required return on the less risky stock?

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