eBook Required Rates of Return Suppose that the risk-free rate is 4.5% and that the market risk premium is 4%. 1. What is the required return on the market? Round your answer to two decimal places. % 2. What is the required return on a stock with a beta of 0.8? Round your answer to two decimal places. % 3. What is the required return on a stock with a beta of 1.2? Round your answer to two decimal places. %