Question: 6. Problem 8.08 (Beta Coefficient) eBook Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: rL = 9.5%;

6. Problem 8.08 (Beta Coefficient)

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Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: rL = 9.5%; r_RF = 1.5%; r_M = 13.5%. Round your answer to two decimal places.

7. Problem 8.09 (Required Rate of Return)

Stock R has a beta of 1.5, Stock S has a beta of 0.55, the required return on an average stock is 13%, and the risk-free rate of return is 6%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.

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