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a ) Astock has expected return of 1 0 % and a beta of 0 . 7 0 . Assume the risk - free rate

a) Astock has expected return of 10% and a beta of 0.70. Assume the risk-free rate is 5.5%. what must the expected return on the market be? b) A stock has expected return of 15%, its beta is 1.45, and the expected return on the market is 12%. What must the risk-free rate be?

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