Expected and required rates of return assume that the


Expected and required rates of return Assume that the risk-free rate is 4% and the market risk premium is 8%. 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 1.5? Round your answer to two decimal places.

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Financial Management: Expected and required rates of return assume that the
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