Capm and expected return lo2stock a has a beta of 2 and, Ask an Expert

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CAPM and Expected Return (LO2)

Stock A has a beta of .2, and investors expect it to return 3%. Stock B has a beta of 1.8, and investors expect it to return 11%. Use the CAPM to calculate the market risk premium and the expected rate of return on the market. (Do not round intermediate calculations. Enter your answers as a whole percent.)

Market risk premium %

Expected market rate of return %

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92325704

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