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Required Rates of Return Suppose that the risk-free rate is 6% and that the market risk premium is 7%. Round your answers to one decimal

Required Rates of Return

Suppose that the risk-free rate is 6% 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?.

    %

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