Question: 8-8 BETA COEFFICIENT Given the following information, determine the beta coefficient for Stock J that is consistent with equilibrium: 1) - 12.5%; TRF-4.5%; r -

 8-8 BETA COEFFICIENT Given the following information, determine the beta coefficient

8-8 BETA COEFFICIENT Given the following information, determine the beta coefficient for Stock J that is consistent with equilibrium: 1) - 12.5%; TRF-4.5%; r - 10.5%. 8-9 REQUIRED RATE OF RETURN Stock R has a beta of 1.5, Stock S has a beta of 0.75, the required return on an average stock is 13%, and the risk-free rate of return is 7%. By how much does the required retum on the riskier stock exceed the required retum on the less risky stock

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