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3. Firm X and Y each have a beta of 1.5 and 2.5. If their expected return (cost of equity) are each estimated to be

3. Firm X and Y each have a beta of 1.5 and 2.5. If their expected return (cost of equity) are each estimated to be 7% and 10% under CAPM, what is the assumed expected market return and risk-free rate

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