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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.

What is the market risk premium %

Expected market rate of return %

Financial Management, Finance

  • Category:- Financial Management
  • Reference No.:- M91590427

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