A stock has a required return of 11%, the risk-free rate is 7%, and the market risk

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A stock has a required return of 11%, the risk-free rate is 7%, and the market risk premium is 4%.
a. What is the stock’s beta?
b. If the market risk premium increased to 6%, what would happen to the stock’s required rate of return? Assume that the risk-free rate and the beta remain unchanged.

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Related Book For  answer-question

Fundamentals of Financial Management

ISBN: 978-0324664553

Concise 6th Edition

Authors: Eugene F. Brigham, Joel F. Houston

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