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1- A) Explain the concept of systematic risk and unsystematic risk and give two examples each; B) What CAPM says about unsystematic risk? 2- A
1- A) Explain the concept of systematic risk and unsystematic risk and give two examples each;
B) What CAPM says about unsystematic risk?
2- A stock has a beta of 1.2. The risk free rate is 5.1% and market return is 13.6%.
A) Whats the market risk premium?
B) What's the expected return of the stock under CAPM?
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