Plaid Pants, Inc. The beta of common stock is 0.90, while the beta of Acme Dynamite Company common stock is 1.80. The expected return in the market is 10 percent and the risk-free rate is 6 percent. Based on the capital-asset pricing model (CAPM) and using the above information, the required return on Plaid Pants' common stock should be _________ and the required return on Acme's common stock should be _____________.

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Using the capital asset pricing model CAPM The requ... View the full answer