Use the capm to find


Stock A has a beta of .5, and investors expect it to return 5%. Stock B has a beta of 1.5, and investors expect it to return 9%. Use the CAPM to find the expected rate of return and the market risk premium on the market.

  1. Expected rate of return ?%
  2. Market risk premium ?%

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Accounting Basics: Use the capm to find
Reference No:- TGS0703021

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