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Required rate of return Stock R has a beta of 1.2, Stock S has a...

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Finance

Required rate of return

Stock R has a beta of 1.2, Stock S has a beta of 0.85, the required return on an average stock is 9%, and the risk-free rate of return is 4%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.

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