Expected and required rates of return Assume that the risk-free rate is 5.5% and the market risk
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Expected and required rates of return
Assume that the risk-free rate is 5.5% and the market risk premium is 4%.
- What is the required return for the overall stock market? Round your answer to two decimal places.%
- What is the required rate of return on a stock with a beta of 1.4? Round your answer to two decimal places.%
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