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You have been given the following information on two corporations; you are to assume that the securities are correctly priced. My Corp, Inc. has a Beta of 1.25 and an Expected Return of .145; Your Corp, Inc. has a Beta of .75 and an Expected Return of .095. Based on the CAPM, what is the:

A. expected return on the market?

B. the risk-free rate?

Financial Management, Finance

  • Category:- Financial Management
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