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Business, 01.10.2019 18:30 mochoa4

Company a has a beta of 0.70, while company b's beta is 0.80. the required return on the stock market is 11.00%, and the risk-free rate is 4.25%. what is the difference between a's and b's required rates of return? (hint: first find the market risk premium, then find the required returns on the stocks.)

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