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beta? 8-3 REQUIRED RATE OF RETURN Assume that the required rate of return on the market portfolio is 15% and the risk-free rate is 7%.

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beta? 8-3 REQUIRED RATE OF RETURN Assume that the required rate of return on the market portfolio is 15% and the risk-free rate is 7%. What is the required rate of return on a stock with a beta of 1.27 8-4 EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 5% and the market risk premium is 6%. What is the required return for the overall stock market? What is the required rate of return on a stock with a bela of 1.2

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