Solution-Expected return on the market-risk-free rate

Expected return on the market-risk-free rate

Reference no: EM132645041

A company stock has an expected return of 19 percent with a beta of 1.7, while B company stock has an expected return of 14 percent with a beta of 1.2. Assume the CAPM is true. What is the expected return on the market? What is the risk-free rate? Note: beta of the market is one, CAPM is defined with security market line.

Reference no: EM132645041

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Expected return on the market-risk-free rate

Reference no: EM132645041

Reference no: EM132645041

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