Ch $08-$End$-$of$-$Chapter Problems $-$ Risk and Rates of Return

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Problem $8\mathrm{.}09($Required Rate of Return$)$

Stock $R$ has a beta of $1\mathrm{.}5,$ Stock $5$ has a beta of $0\mathrm{.}95,$ the required return on an average stock is $11\%,$ and the risk$-$free rate of return is $3\%.$ By how much does

the required retum on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.

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