What is the required return for overall stock market

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Expected and required rates of return

Assume that the risk-free rate is 5.5% and the market risk premium is 7%.

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 1.3? Round your answer to two decimal places.

%

Reference no: EM132036500

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