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

Required:

Question 1: What is the expected return for the overall stock market?

Question 2: What is the required rate of return on a stock with a beta of 1?

Note: Please provide reasons to support your answer.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91148506

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