Information about capital-asset-pricing model

Reference no: EM1333193

Consider the following two stocks:
Beta Expected Return
Merck Pharmaceutical 1.4 25%
Pizer Drug Corp 0.7 14%

Assume the capital-asset-pricing model holds. Based on the CAPM, what is the risk-free rate? What is the expected return on the market portfolio?

Reference no: EM1333193

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