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You are holding a stock that has a beta of 2.41 and is currently in equilibrium. The required return on the stock is 25.05%, and

You are holding a stock that has a beta of 2.41 and is currently in equilibrium. The required return on the stock is 25.05%, and the return on the market portfolio is 13.40%. What would be the new required return on the stock if the return on the market increased to 16.00% while the risk-free rate and beta remained unchanged?

43.70%

31.31%

25.05%

38.48%

27.68%

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