Find the required return for the overall stock market

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Reference no: EM131907114

1. Required rate of return Assume that the risk-free rate is 3.5% and the required return on the market is 10%. What is the required rate of return on a stock with a beta of 0.8? Round your answer to two decimal places.

2- Expected and required rates of return Assume that the risk-free rate is 5% and the market risk premium is 5%.

A- What is the required return for the overall stock market? Round your answer to two decimal places.

B- What is the required rate of return on a stock with a beta of 1.5? Round your answer to two decimal places.

Reference no: EM131907114

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