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2. (CAPM) The expected market return is 8% and the risk-free interest rate is 4%, compute the expected returns for each of the following stocks

2. (CAPM) The expected market return is 8% and the risk-free interest rate is 4%, compute the expected returns for each of the following stocks using the CAPM equation: E(r)errtB(E(Tm)-17) Stock Beta Expected Return Google 1.3 Microsoft GM 1.5 0.8

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