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Assume that the risk - free rate is 7 % and the market risk premium is 6 % . a . What is the required

Assume that the risk

-

free rate is

7 %

and the market risk premium is

6 % .

.

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

2.1 ?

Round your answer to two decimal places.

%

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