Portfolio theory and capital asset pricing model

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Johnson Paint stock has an expected return of 19% with a beta of 1.7, while Williamson Tire stock has an expected return of 14% with a beta of 1.2. Assume the CAMP is true.

a. What is the expected return on the market?

b. What is the risk-free rate?

c. What is the market risk premium?

Reference no: EM1332749

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