Stock A has a beta of 1.2, Stock B has a beta of 0.6, the expected rate of return on an average…

Stock A has a beta of 1.2, Stock B has a beta of 0.6, the expected rate of return on an average….

Stock A has a beta of 1.2, Stock B has a beta of 0.6, the expected rate of return on an average stock is 14%, and the risk free rate of return is 7%.By how much does the required return on the riskier stock exceed the required return on the less risky stock?

>You buy a stock for $40 and sell it for $80 eight years from now. The stock does not pay dividends. Calculate the compounded annual return on this stock.

>You buy a security that pays $30/quarter for 4 years. The cost of the security is $400. What is your return?

Please show excel formulas on solution

Stock A has a beta of 1.2, Stock B has a beta of 0.6, the expected rate of return on an average…