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Find the expected rate of return and the market risk

Stock A has a beta of .5, and investors expect it to return 10%. Stock B has a beta of 1.5, and investors expect it to return 16%. Use the CAPM to find the expected rate of return and the market risk premium on the market. (Do not round intermediate calculations. Round your answers to 1 decimal place.)

Expected rate of return %
Market risk premium %

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Finance Basics: Find the expected rate of return and the market risk

Reference No:- TGS0927145

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