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A stock has a beta of 1 . 7 . The risk - free rate is 3 % . Assume that the CAPM holds. What

A stock has a beta of

1.7 .

The risk

-

free rate is

3 % .

Assume that the CAPM holds.

What is the expected return for the stock if the expected return on the market is

9 % ?

What is the expected return for the stock if the expected market risk premium is

9 % ?

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