Please check my work...

Assume the risk-free rate is 4% and the market risk premium is 6%. What would be the required rate of return for Wal-Mart given your answer to part 2a?

***Please note that 2a required that I go to Yahoo finance and find the current beta for Walmart...I found .5***

Risk Free Rate = 4%

Market Risk Premium = 6%

Beta = .5

Thus, using the following formula:

Risk Free Rate + Beta * Market Risk Premium = Required Rate of Return

4% + .5 * 6% = Required Rate of Return

4% + 3% = 7% Required Rate of Return