Required rate of return on the stock market


Apex Roofing's stock has a beta of 1.50, its required return is 14.00%, and the risk-free rate is 5.00%. What is the required rate of return on the stock market? (Hint: First find the market risk premium.)

10.50%

11.00%

11.50%

12.00%

12.50%

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Finance Basics: Required rate of return on the stock market
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