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(6 pts) Assume that the current US Treasury Bill rate is 3.4% and the SP 500 is expected to earn 10.8% per year. Stock GG

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(6 pts) Assume that the current US Treasury Bill rate is 3.4% and the SP 500 is expected to earn 10.8% per year. Stock GG has a beta of 1.4. a) What is the market Risk Premium? Market risk premium = \% b) What is the required return for a stock GG? Required Return for Stock GG = %

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