Expected return for the overall stock market, Finance Basics

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Expected return for the overall stock market

Assume that the risk-free rate is 3% and the market risk premium is 7%.

Required:

Question 1: What is the expected return for the overall stock market?

Question 2: What is the required rate of return on a stock with a beta of 1?

Note: Please provide reasons to support your answer.

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Finance Basics: Expected return for the overall stock market

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Finance Basics: Expected return for the overall stock market

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