What is the expected return on stock

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Reference no: EM132053596

1. What is the expected return on stock A if the expected return on the market is 10% and the risk-free rate is 4%? Asset A has a beta of 1.2.

2. Asset A has an expected return of 12%. The expected market return is 14% and the risk-free rate is 2%. What is asset A’s beta?

Answer are provided. Please explain and how to do it.

Reference no: EM132053596

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