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The risk-free rate is 2%. The required return on the overall stock market is 8%, so the market risk premium is 6%. An individual stock

The risk-free rate is 2%. The required return on the overall stock market is 8%, so the "market risk premium" is 6%. An individual stock has a Beta coefficent of 1.2. How much is the total risk premium that must be added to the 2% risk-free rate to arrive at the required return for the stock?

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