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You are holding a stock with a beta of 2.0 that is currently in equilibrium. The required rate of return on the stock is 0.15 versus a required...

You are holding a stock with a beta of 2.0 that is currently in equilibrium. The
required rate of return on the stock is 0.15 versus a required return on market of 0.1.
Now the required return on market increases by 30.0%. The risk‐free rate is unchanged.
By what percentage would the required return on your stock increase as a result of this
event?

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CH260410_484725_FIN.doc

You are holding a stock with a beta of 2.0 that is currently in equilibrium. The
required rate of return on the stock is 0.15 versus a required return on market of 0.1.
Now the required return on...

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