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Suppose the beta coefficient of a stock doubles from ?1 = 1.0 to?2 = 2.0. Logic says that the required rate of return on the

Suppose the beta coefficient of a stock doubles from ?1 = 1.0 to?2 = 2.0. Logic says that the required rate of return on the stockshould also double. Is this logic correct? Explain. 2 answers

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