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a. ALM Property stock has a beta of 1.5 and an expected return of 13%. The risk-free rate is 4%. Assume the CAPM is valid.

a. ALM Property stock has a beta of 1.5 and an expected return of 13%. The risk-free rate is 4%. Assume the CAPM is valid. i. Determine the market risk premium. (6 marks) ii. Suppose UCC stock has a beta of 0.6. What is the expected return on the UCC stock? (4 marks)

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