What is the expected return on the market portfolio

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Reference no: EM131328838

1. The expected return on a particular stock is 14%. The stock's beta is 1.5. What is the risk-free rate if the expected return on the market portfolio equals 10%?

2. If the risk-free rate equals 4% and a stock with a beta of 0.75 has an expected return of 10%, what is the expected return on the market portfolio?

Reference no: EM131328838

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