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a. Calculate the risk-free rate. b. Calculate the expected return on the market. Your boss has given you the following information about two stocks. Stock

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a. Calculate the risk-free rate.

b. Calculate the expected return on the market.

Your boss has given you the following information about two stocks. Stock ticker Beta Expected return UU 1.82 19.75% 00 0.75 8.45% e He also told you that CAPM holds and that these stocks are fairly priced, that is, priced according to CAPM. Answer the following questions. (Round your final answers to 2 decimal places)

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