Assume that the risk-free rate is 5 and that the market


Question: Required Rate of Return

Assume that the risk-free rate is 5% and that the market risk premium is 7%.

What is the required rate of return on a stock with a beta of 0.9? Round your answer to two decimal places.

What is the required rate of return on a stock with a beta of 2.3? Round your answer to two decimal places.

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Finance Basics: Assume that the risk-free rate is 5 and that the market
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