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You are holding a stock with a beta of 2.0 that is currently in equilibrium. The required rate of return on the stock is 15%
You are holding a stock with a beta of 2.0 that is
currently in equilibrium. The required rate of return on
the stock is 15% versus a required return on an average
stock of 10%. Now the required return on an average
stock increases by 30.0% . The riskfree rate is
unchanged. By what percentage would the required
return on your stock increase as a result of this event?
Can you solve this without using single variables? Thank you
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