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A) What is the required return for the overall stock market? Assume that the risk-free rate is 7% and the market risk premium is 4%

A) What is the required return for the overall stock market? Assume that the risk-free rate is 7% and the market risk premium is 4% Round your answer to two decimal places.

B) What is the required rate of return on a stock with a beta of 1.4? Assume that the risk-free rate is 7% and the market risk premium is 4% Round your answer to two decimal places.

EXPECTED AND REQUIRED RATES OF RETURN

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