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A stock has a beta of 1.2. The risk free rate is 5.1% and market return is 13.6%. A) Whats the market risk premium? B)

A stock has a beta of 1.2. The risk free rate is 5.1% and market return is 13.6%.

A) Whats the market risk premium?

B) What's the expected return of the stock under CAPM?

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