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You are holding a stock that has a beta of 2.59 and is currently in equilibrium. The required return on the stock is 26.18%
You are holding a stock that has a beta of 2.59 and is currently in equilibrium. The required return on the stock is 26.18% and the return on a risk-free asset is 8.0%. What would be the return on the stock if the stock's beta increased to 3.57 while the risk-free rate and market return remained unchanged?
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Equity Asset Valuation
Authors: Jerald E. Pinto, Elaine Henry, Thomas R. Robinson, John D. Stowe, Abby Cohen
2nd Edition
470571439, 470571438, 9781118364123 , 978-0470571439
