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1. Assume that the risk-free rate is 7% and the market risk premium is 7%. A. What is the required return for the overall stock

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

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 2? Round your answer to two decimal places.

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