Stock a has a beta of 8 and investors expect it to return 9, Ask an Expert

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Stock A has a beta of .8, and investors expect it to return 9%. Stock B has a beta of 1.2, and investors expect it to return 13%. Use the CAPM to find the expected rate of return and the market risk premium on the market. What is the Market Risk Premium?

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Financial Management, Finance

Category:- Financial Management
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