Question: Suppose r RF = 3%, r M = 10%, and r A = 16%. Calculate Stock A's beta. Do not round intermediate calculations. Round your

Suppose rRF = 3%, rM = 10%, and rA = 16%.

  1. Calculate Stock A's beta. Do not round intermediate calculations. Round your answer to two decimal places.

  2. If Stock A's beta were 2.4, then what would be A's new required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

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