EXPECTED AND REQUIRED RATES OF RETURN

Assume that the risk$-$free rate is $5\%$ and the market risk premium is $7\%.$

a$.$ What is the required return for the overall stock market? Round your answer to two decimal places.

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b$.$ What is the required rate of return on a stock with a beta of $2\mathrm{.}1?$ Round your answer to two decimal places.

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