Stock a has a beta of 6 and investors expect it to return 5, Ask an Expert

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Stock A has a beta of .6, and investors expect it to return 5%. Stock B has a beta of 1.4, and investors expect it to return 7%. Use the CAPM to find the expected rate of return on market and the market risk premium. (Do not round intermediate calculations. Round your answers to 1 decimal place.)

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Financial Management, Finance

Category:- Financial Management
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