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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

Expected and required rates of return

Assume that the risk-free rate is 5.5% and the market risk premium is 4%.

  1. What is the required return for the overall stock market? Round your answer to two decimal places.%
  2. 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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