Final answer:
The required return for the market can be calculated using the Capital Asset Pricing Model (CAPM), which takes into account the risk-free rate, beta value, and market risk premium.
Step-by-step explanation:
The required return for the market can be calculated using the Capital Asset Pricing Model (CAPM). The CAPM formula is:
Required Return = Risk-Free Rate + Beta * Market Risk Premium
In this case, the risk-free rate is given as 8%, and the market risk premium is given as 2%. To calculate the required return for the market, we need to know the beta value, which represents the stock's sensitivity to market movements.
Once we have the beta value, we can substitute it into the formula to find the required return for the market.