If a stock has a beta of 05 and a required rate of return


Assume that the risk-free rate is 2.0 percent. If a stock has a beta of 0.5 and a required rate of return of 11.2 percent, and the market is in equilibrium, what is the return on the market portfolio? Show your answer to the nearest .1% using whole numbers (e.g., enter 14.1% as 14.1 rather than .141).

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Financial Management: If a stock has a beta of 05 and a required rate of return
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