Suppose the beta coefficient of a stock doubles from 1 1 to 2 2 Logic says that the required rate of return on the stock should also double Is this logic correct Explain

Question: Suppose the beta coefficient of a stock doubles from 1 = 1 to 2 = 2. Logic says that the required rate of

Suppose the beta coefficient of a stock doubles from β₁ = 1 to β₂ = 2. Logic says that the required rate of return on the stock should also double. Is this logic correct? Explain.

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