What is the expected return for the overall stock market

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Expected and required rates of return

Assume that the risk-free rate is 2.5% and the market risk premium is 4%.

What is the expected 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 1.1? Round your answer to two decimal places.

Reference no: EM131047782

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