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Assume that the risk-free rate is 5% and the market risk premium is 8%. a. What is the required return for the overall stock market?

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Assume that the risk-free rate is 5% and the market risk premium is 8%. 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 1.4? Round your answer to two decimal places. %

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