Attempts: Keep the Highest: 12 3. Problem 8.04 (Expected and required Rates of Return) Assume that the risk-free rate is 4.5% and the market risk premium is 6%. What is the required return for the overall stock market? Round your answer to one decimal place. % What is the required rate of return on a stock with a beta of 1.2? Round your answer to one decimal place. % 4. Problem 8.07 (Portfolio Required Return) ED Suppose you are the money manager of a $4.64 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta $ 520,000 1.50 B 300,000 (0.50) 1,120,000 1.25 2,700,000 If the market's required rate of return is 12% and the risk-free rate is 5%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. 0.75 % 5. Problem 8.11 (CAPM and Required Return) Calculate the required rate of return for Mudd Enterprises assuming that investors expect a 3.2% rate of inflation in the future. The real risk-free rate is 1.0%, and the market risk premium is 6.5%. Mudd has a beta of 1.6, and its realized rate of return has averaged 10.0% over the past 5 years. Round your answer to two decimal places. %