Investment & Portfolio Management?

Question

I was wondering if anyone can help me with this quaestion.

From what anyone might know about the current risk-free rate and historic risk premium, can someone develop a required return for the average stock in the U.S. Stock Market, and dscuss the reasoning for each of the required return factors.

Any assistance will be much appreciated.
Thank you.

Answer 1

There are 2 types of return: 1.)Dividend (this is whatever the company feels like giving up, Microsoft didnt pay one for several very profitable years 2.)profit from selling a stock (buying makes a stock go up,selling brings the price down)