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Plaid Pants, Inc. common stock has a beta of 0.90, while AcmeDynamite Company common stock has a beta of 1.80. The expectedreturn on the market is 10 percent, and the risk-free rate is 6percent. According to the capital-asset pricing model (CAPM) andmaking use of the information above, the required return on PlaidPants' common stock should be __________ and the required return onAcme's common stock should be ___________. (Pleaseshow me the process. Thanks!)
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