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Rate of Return

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Let us assume that the risk-free rate of interest is 7.3% and that the market risk premium is 14.1%. a) What is the required rate of return on a stock that has a beta of 0.3? b) What is the expected return for the overall stock market?

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Solution provided by:
Gaurav Agarwal, MS
Education
  • BE, Bangalore University, India
  • MS, University of Wisconsin-Madison
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