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1. A stock has a beta of 1.5. The market currently has risk free rate of 4% and the expected return of 12%. a) What
1. A stock has a beta of 1.5. The market currently has risk free rate of 4% and the expected return of 12%.
a) What is the current market risk premium?
B) What are the three factors under CAPM to determine a stock return?
C) What is the expected return on this stock?
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