What is the expected return for the overall stock market


Expected and required rates of return

Assume that the risk-free rate is 4% and the market risk premium is 8%.

  1. What is the expected return for the overall stock market? Round your answer to two decimal places. %
  2. What is the required rate of return on a stock with a beta of 0.6? Round your answer to two decimal places. %

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Finance Basics: What is the expected return for the overall stock market
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