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Stock R has a beta of 1.2, Stock S has a beta of 0.65, the required return on an average stock is 9%, and the

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Stock R has a beta of 1.2, Stock S has a beta of 0.65, the required return on an average stock is 9%, and the risk-free rate of return is 3%. 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. % Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: fl = 9.75%; rRF = 3%; M = 12.5%. Round your answer to two decimal places. An individual has $35,000 invested in a stock with a beta of 0.3 and another $80,000 invested in a stock with a beta of 1.4. If these are the only two investments in her portfolio, what is her portfolio's beta? Do not round intermediate calculations. Round your answer to two decimal places. Suppose you are the money manager of a $4.99 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta $360,000 1.50 B 780,000 (0.50) 1,100,000 1.25 D 2,750,000 0.75 If the market's required rate of return is 11% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. %

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