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Suppose r RF = 8%, r M = 11%, and r B = 14%. a. Calculate Stock Bs beta,. b. If Stock Bs beta were

Suppose rRF = 8%, rM = 11%, and rB = 14%.

a. Calculate Stock B’s beta,β.

b. If Stock B’s beta were 1.5, what would be B’s new required rate of return?

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