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How do solve this problem below? EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 7% and the market risk premium is

How do solve this problem below?

EXPECTED AND REQUIRED RATES OF RETURN

Assume that the risk-free rate is 7% and the market risk premium is 4%.

hat 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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