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Problem 8-4 Expected and required rates of return Assume that the risk-free rate is 3% and the market risk premium is 7%. What is the

Problem 8-4 Expected and required rates of return

Assume that the risk-free rate is 3% and the market risk premium is 7%.

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 2.3? Round your answer to two decimal places. %

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