company a has a beta of 0.70 while company b beta is 1.45. 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 rate of return?
difference between A and B's required return = difference in betas *(required return on stock market - risk free rate)
=> (1.45 - 0.70) *(11-4.25)
=>5.0625%.
company a has a beta of 0.70 while company b beta is 1.45. the required return...
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