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7 Stock A has a beta of 0.4, and investors expect it to return 11%. Stock B has a beta of 1.6, and investors expect

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7 Stock A has a beta of 0.4, and investors expect it to return 11%. Stock B has a beta of 1.6, and investors expect it to return 17%. Use the CAPM to calculate the market risk premium and the expected rate of return on the market. (Enter your answers as a whole percent.) 10 points Market risk premium Expected market rate of return eBook

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