Question: 3. Problem 8.04 Click here to read the eBook: Stand-Alone Risk EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 2.5% and

3. Problem 8.04 Click here to read the eBook: Stand-Alone Risk

3. Problem 8.04 Click here to read the eBook: Stand-Alone Risk EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 2.5% and the market risk premium is 3%. a. What is the required return for the overall stock market? Round your answer to two decimal places. b. What is the required rate of return on a stock with a beta of 1.2? Round your answer to two decimal places

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