Final answer:
The required return for the market is calculated by adding the risk-free rate of 9.3 percent to the market risk premium of 4.6 percent, resulting in a required return of 13.9 percent.
Step-by-step explanation:
The student's question pertains to calculating the required return for the market based on given risk-free rate and market risk premium. In finance, the required return on the market is determined using the Capital Asset Pricing Model (CAPM), which is represented by the formula Required Return on Market = Risk-Free Rate + Market Risk Premium.
Considering the provided risk-free rate of 9.3 percent and a market risk premium of 4.6 percent, one simply adds these two figures to determine the required market return.
The calculation would be:
Required Return on Market = Risk-Free Rate + Market Risk Premium
Required Return on Market = 9.3% + 4.6%
Required Return on Market = 13.9%
Therefore, the required return for the market, in this case, would be 13.9 percent.