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You are holding a stock that has a beta of 2.11 and is currently in equilibrium. The required return on the stock is 31.11%, and
You are holding a stock that has a beta of 2.11 and is currently in equilibrium. The required return on the stock is 31.11%, and the return on the market portfolio is 18.90%. What would be the new required return on the stock if the return on the market increased to 26.00% while the risk-free rate and beta remained unchanged? 31.11% 62.76% 46.09% 55.74% 37.42%
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