A stock has a required return of 11 the risk-free rate is 7


A stock has a required return of 11%, the risk-free rate is 7%, and the market risk premium is 4%. What is the stock's beta?

If the market risk premium increased to 6%, what would happen to the stock's required rate of return?

Assume that the risk-free rate and the beta remain unchanged.

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Financial Management: A stock has a required return of 11 the risk-free rate is 7
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