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3. Assume a risk-free rate of 0% and a return on the market 10%. What is the CAPM expected return of a stock whose covariance

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3. Assume a risk-free rate of 0% and a return on the market 10%. What is the CAPM expected return of a stock whose covariance with the market is 0.01 if the variance of the market it 0.02? (hint: what is the formula for beta on page 39 of the capm lecture notes?)

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