Business, 24.09.2019 02:00 GreenHerbz206

Hr industries (hri) has a beta of 1.4, while lr industries's (lri) beta is 1.0. the risk-free rate is 6%, and the required rate of return on an average stock is 13%. the expected rate of inflation built into rrf falls by 1.5 percentage points; the real risk-free rate remains constant; the required return on the market falls to 10.5%; and all betas remain constant. after all of these changes, what will be the difference in the required returns for hri and lri? round your answer to two decimal places.

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Hr industries (hri) has a beta of 1.4, while lr industries's (lri) beta is 1.0. the risk-free rate i...

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