Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate

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Stock R has a beta of 1.5, Stock S has a beta of 0.75, the expected rate of return on an average stock is 15 percent, and the risk-free rate of return is 9 percent. By how much does the required return on the riskier stock exceed the required return on the less risky stock?

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Principles of Finance

ISBN: 978-1285429649

6th edition

Authors: Scott Besley, Eugene F. Brigham

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