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1. Suppose the CAPM holds and that asset A has a beta of 0.5 and asset B has a beta of 2. If the expected

1. Suppose the CAPM holds and that asset A has a beta of 0.5 and asset B has a beta of 2. If the expected return on A is 10% and the expected return on B is 25% what must be the (a) the risk free rate? (b) expected return on the market

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