Question

You need to write down all necessary steps/formulas leading to your results in EXCEL FORMAT: Company...

You need to write down all necessary steps/formulas leading to your results in EXCEL FORMAT:

Company A has a beta of 0.70, while Company B's beta is 1.20. 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?

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Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

DIFFERENCE BETWEEN A& B IS TAKEN AS POSITIVE VALUE

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