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The risk-free rate of return is 5%, the expected return of the market index is 10%,...

The risk-free rate of return is 5%, the expected return of the market index is 10%, and the expected return of Stock Y is 12%. Based on this information, what is Stock Y’s beta coefficient?

If Stock Y’s beta coefficient is 2.0, what is the stock’s (new) required rate of return?

Please show the detailed calculation process.

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