Assume the real return in the economy is 5.0 percent.It is anticipated that the consumer price index will go from 340 to 363.8.Shares of common stock for the market in general are assumed to have a required rate of return 1/4th higher than the risk-free rate.Compute the required return on common stock.

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The Answer of Assume the real return in the economy is 5.0 percent.It is anticipated that the consumer price index will go from 340 to 363.8.Shares of common stock for the market in general are assumed to have a required rate of return 1/4th higher than the risk-free rate.Compute the required return on common stock.

Assume the Real Return in the Economy Is 5