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    Calculating expected market retun & return on a stock

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    Assume that the risk-free rate is 5% and the market risk premium is 6%. What is the expected return for the overall stock market? What is the required rate of return on a stock that has a beta of 1.2?

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    https://brainmass.com/business/beta-and-required-return-of-a-project/calculating-expected-market-retun-return-on-a-stock-304455

    Solution Preview

    Expected return for overall stock market=risk free rate+ market risk premium
    ...

    Solution Summary

    Solution describes the methodology to calculate expected market return and required rate of return on a stock.

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