Required Rates of Return

Suppose that the risk-free rate is 4% and that the market risk premium is 7%. Round your answers to one decimal place.

What is the required return on the market?

%

What is the required return on a stock with a beta of 1.0?

%

What is the required return on a stock with a beta of 1.4?.

%

Suppose that the risk-free rate is 4% and that the market risk premium is 7%. Round your answers to one decimal place. 1. What is the required return on the market? % 2. What is the required return on a stock with a beta of 1.0 ? % 3. What is the required return on a stock with a beta of 1.4 ?. %