Stock R has a beta of 2.4, Stock S has a beta of 0.5, the required return on an average stock is 13%, and the risk-free rate of return is 4%. By how much does the required return on the riskier stock exceed the required return on the less risky stock? Round your answer to two decimal places.
Stock R has a beta of 2.4, Stock S has a beta of 0.5, the required return on an average stock is 13%, and the risk-free
A mutual fund manager has a $20 million portfolio with a beta of 1.00. The risk-free rate is 4.25%, and the market risk premium is 7.0%. The manager expects to receive an additional $5 million, which she plans to invest in a number of stocks. After investing the additional funds, she wants the fund's required return to be 13%. What should be the average beta of the new stocks added to the portfolio? Negative value, if any, should be indicated by a minus sign. Do not round intermediate calculations. Round your answer to two decimal places
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