Assume that the risk-free rate is 7 and the market risk


Expected and required rates of return

Assume that the risk-free rate is 7% and the market risk premium is 4%.

What is the expected return for the overall stock market? Round your answer to two decimal places.

%

What is the required rate of return on a stock with a beta of 1.1? Round your answer to two decimal places.

%

How would you do the calculations in excel.

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Financial Management: Assume that the risk-free rate is 7 and the market risk
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