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Use the capm to find the expected market risk premium

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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 13% .

Problem 1: Use the CAPM to find the expected market risk premium and the expected rate of return on the market. (Round your answers to 2 decimal places.)

Reference no: EM132758494

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