Stock a has a beta of 5 and investors expect it to return 5

Reference no: EM13595522

Stock A has a beta of .5, and investors expect it to return 5%. Stock B has a beta of 1.5, and investors expect it to return 9%. Use the CAPM to find the expected rate of return and the market risk premium on the market.

Expected rate of return ?%
Market risk premium ?%

Reference no: EM13595522

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