The required rate of return on the stock of a company is best described as the:

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The required rate of return on the stock of a company is best described as the return that shareholders demand for investing in stocks with similar risk. This rate is influenced by the risk-free rate, the stock's beta (which measures its volatility relative to the market), and the market risk premium. It reflects the compensation investors require for the risk associated with holding the stock, rather than the dividend yield or the net income per dollar of book value of equity.

The Required Rate of Return on the Stock of a Company