Click here to read the eBook: Stand-Alone Risk EXPECTED AND REQUIRED RATES OF RETURN Assume that the risk-free rate is 4% and the market risk premium is 7%. 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 1.67 Round your answer to two decimal places. % Click here to read the eBook: Risk in a Portfolio Context: The CAPM Problem Walk-Through PORTFOLIO REQUIRED RETURN Suppose you are the money manager of a $4.81 million Investment fund. The fund consists of four stocks with the following Investments and betas: Beta Stock Investment $ 300,000 1.50 B 760,000 (0.50) 900,000 1.25 D 2,850,000 0.75 If the market's required rate of return is 9% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places % Click here to read the eBook: The Relationship Between Risk and Rates of Return BETA COEFFICIENT Given the following information, determine the beta coefficient for Stock L that is consistent with equilibrium: fL - 14%; - 4.8%; 7-9%. Round your answer to two decimal places