Use the capm to calculate the market risk premium and the, Financial Management

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Use the capm to calculate the market risk premium and the

Stock A has a beta of .5, and investors expect it to return 6%. Stock B has a beta of 1.5, and investors expect it to return 12%. Use the CAPM to calculate the market risk premium and the expected rate of return on the market. (Do not round intermediate calculations. Enter your answers as a whole percent.)

Market risk premium %

Expected market rate of return %

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Financial Management: Use the capm to calculate the market risk premium and the

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