Question: Problem 6-7 Required Rate of Return Suppose r RF = 4%, r M = 11%, and r A = 16%. Calculate Stock A's beta. Round

Problem 6-7 Required Rate of Return

Suppose rRF = 4%, rM = 11%, and rA = 16%.

  1. Calculate Stock A's beta. Round your answer to two decimal places.
  2. If Stock A's beta were 1.4, then what would be A's new required rate of return? Round your answer to two decimal places. %

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