dy Tools Tips ips ls ductory Ch 08: Assignment - Risk and Rates of Return REQUIRED RATE OF RETURN (Percent) 16.0 120 80 0.6, 7.6 Return on HC's Stock 4.0 1 0 0.5 10 15 2.0 RISK (Beta) CAPM Elements Risk-free rate (TRF) Market risk premium (RPM)) Happy Corp. stock's beta Required rate of return on Happy Corp. stock Value following graph plot, SML, and indicates t rn that Investors required from HC, free rate, 4.4%, 7.6%, 2.2% or 4.0%. Marl premium. 7.8 10.8 4.5 or 6.0% HC beta 0.2 0.6 or 1.0%. Rate of return - 6.5,6.8,9.5,7.6