Compute the risk-free and the expected return on the market

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Reference no: EM131995173

Stock A has a beta of 1.75 and an expected return of 15%. Stock B has a beta of 2.78 and an expected return of 23%. Assume that the market is in equilibrium (i.e., all assets in the economy are correctly priced).

Compute the risk-free and the expected return on the market portfolio.

Reference no: EM131995173

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