What is the expected return for the overall stock market


Question 1 : Assume that the risk-free rate is 5.5% and the expected return on the market is 13%. What is the required rate of return on a stock with a beta of 1.3? Round your answer to two decimal places.
Question 2 : Assume that the risk-free rate is 3.5% and the market risk premium is 5%.
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 0.6? Round your answer to two decimal places.
Question: Given the following information, determine the beta coefficient for Stock J that is
consistent with equilibrium: rJ = 14.75%; rRF = 6.75%; rM = 8%. 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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