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5. A firms stock has a beta of 1.2; the expected return on the market is 14%; and the risk-free rate is 4%. What is
5. A firms stock has a beta of 1.2; the expected return on the market is 14%; and the risk-free rate is 4%. What is the expected rate of return on this stock (From Chapter 11)
6. The expected return on the market is 14%; and the risk-free rate is 5%. What is the market risk premium? (Note: Market Risk Premium = (Market rate of return Risk-free rate) (From Chapter 11)
please help, show work and answer questions 5 and 6
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