The expected return on karolco stock is 165 percent if the, Ask an Expert

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The expected return on KarolCo. stock is 16.5 percent. If the risk-free rate is 5 percent and the beta of KarolCo is 2.3, then:

a) what is the risk premium on the market assuming CAPM is true?

b) Using the above information, what is the rate of return on the market?

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