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Company A has a beta of 0.70, while Company B's beta is 1.50. The required return...

Company A has a beta of 0.70, while Company B's beta is 1.50. The required return on the stock market is 11.00%, and the risk-free rate is 4.25%. What is the difference between A's and B's required rates of return? (Hint: First find the market risk premium, then find the required returns on the stocks.) Select the correct answer. a. 5.34% b. 5.36% c. 5.38% d. 5.42% e. 5.40%

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