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Expected and required rates of return Assume that the risk-free rate is 5% and the market risk premium is 6%. What is the expected return

Expected and required rates of return

Assume that the risk-free rate is 5% and the market risk premium is 6%.

What is the expected 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 1.2? Round your answer to two decimal places. %

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