If the expected return on the market is 7 percent and the


If the expected return on the market is 7 percent and the risk-free rate is 4 percent,

What is the expected return for a stock with a beta equal to 0.65? (Round answer to 2 decimal places, e.g. 0.15.)

What is the market risk premium? (Round answer to 2 decimal places, e.g. 0.15.)

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Financial Management: If the expected return on the market is 7 percent and the
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