Required and expected rates of return

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Expected and required rates of return

Assume that the risk-free rate is 3.5% and the market risk premium is 3%.

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

%

What is the required rate of return on a stock with a beta of 1.2? Round your answer to two decimal places.

%

Reference no: EM131587992

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