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Suppose you estimate that stock A has a volatility of 35% and a beta of 1.51, whereas stock B has a volatility of 63% and

Suppose you estimate that stock A has a volatility of 35% and a beta of 1.51, whereas stock B has a volatility of 63% and a beta of 0.72. Suppose the risk-free rate is 3% and you estimate the markets expected return as 10%. Which firm has a higher cost of equity capital?

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