al ExamChapters 7111416 28 minutes Time Remaining Back to As

al Exam-Chapters 7-11,14,16 28 minutes Time Remaining: Back to Assignment Deadline Today at 09.00 Assume that the risk-free rate is 5% and the market risk premium is 8%, what is the required return for the overall stock market? 11. 11% B. 13% ? D. 12% Contiage without saving Copyright Notices Terms of Use Privacy Notice Security Notice Accessibility 80p889 FS

Solution

Required return on overall stock market = risk free rate plus market risk premium = 5% + 8% = 13%