Attempts

Keep the Highest $/2$

Problem $8\mathrm{.}04($Expected and Required Rates of Return$)$

Assume that the risk$-$free rate is $3\mathrm{.}5\%$ and the market risk premium is $4\%.$ What is the required return for the overall stock market? Round your answer to one decimal place.

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What is the required rate of return on a stock with a beta of $0\mathrm{.}5?$ Round your answer to one decimal place.

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