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3. Problem 8.04 (Expected and Required Rates of Return) eBook Assume that the risk-free rate is 2.5% and the market risk premium is 5%.

3. Problem 8.04 (Expected and Required Rates of Return) eBook Assume that the risk-free rate is 2.5% and the market risk premium is 5%. What is the required return for the overall stock market? Round your answer to one decimal place. % What is the required rate of return on a stock with a beta of 0.87 Round your answer to one decimal place. %

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