SAT, 29.12.2021 01:30 villarrealc1987
Company a has a beta of 0. 70, while company b's beta is 1. 20. 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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