Calculate the expected return on the stock

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Problem 1: A stock has a beta of 0.88, the expected return on the market is 12%, and the risk-free rate is 2%. Calculate the expected return on the stock. (Enter percentages as decimals and round to 4 decimals)

Problem 2: A stock has an expected return of 16.75%, the risk-free rate is 2%, and the market risk premium is 9%. Calculate the beta of this stock. (Round to 3 decimals)

Reference no: EM132946046

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