22. CAPM and Expected Return. Stock A has a beta of .5, and investors expect it to...

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22. CAPM and Expected Return. Stock A has a beta of .5, and investors expect it to return 5%. Stock B has a beta of 1.5, and investors expect it to return 13%. Use the CAPM to find the mar- ket risk premium and the expected rate of return on the market. (LO2)

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Fundamentals Of Corporate Finance

ISBN: 9780073382302

6th Edition

Authors: Richard A Brealey, Stewart C Myers, Alan J Marcus

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