What is the required rate of return on a stock with beta

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Reference no: EM132033971

EXPECTED AND REQUIRED RATES OF RETURN

Assume that the risk-free rate is 7% 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 0.4? Round your answer to two decimal places. %

Reference no: EM132033971

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