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Required Rates of Return Suppose that the risk-free rate is 7% and that the market risk premium is 5%. What is the required return on

Required Rates of Return

Suppose that the risk-free rate is 7% and that the market risk premium is 5%.

What is the required return on the market? Round your answer to two decimal places.

What is the required return on a stock with a beta of 0.8? Round your answer to two decimal places.

What is the required return on a stock with a beta of 1.8? Round your answer to two decimal places.

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