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3 CAPM In an analyst report you found credible, the author reported on expected returns and estimated betas for two stocks, A and B. Specifically,
3 CAPM In an analyst report you found credible, the author reported on expected returns and estimated betas for two stocks, A and B. Specifically, the analyst provided expected returns of 12.50% and 9.75%, and estimated betas of 1.25 and 0.85 for stocks A and B, respectively. If you interpreted these values consistent with CAPM, what would be the expected return on the market? What risk-free rate is implied
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