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A Stock You Are Holding Has a Beta of 2

question 25

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A stock you are holding has a beta of 2.0 and the stock is currently in equilibrium.The required rate of return on the stock is 15% versus a required return on an average stock of 10%.Now the required return on an average stock increases by 30.0% (not percentage points) .The risk-free rate is unchanged.By what percentage (not percentage points) would the required return on your stock increase as a result of this event?


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