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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 1.35 and an Expected Return of .075; Your Corp, Inc. has a Beta of .65 and an Expected Return of .05. Based on the CAPM, what is the:

A] expected return on the market?

B] the risk-free rate?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91535896

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