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A stock has a beta of 1.5. The risk-free rate is 4%. Assume that the CAPM holds. Part 1 1. Attempt 1/10 for 10 pts.

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A stock has a beta of 1.5. The risk-free rate is 4%. Assume that the CAPM holds. Part 1 1. Attempt 1/10 for 10 pts. What is the expected return for the stock if the expected return on the market is 10% ? Part 2 - 1 Attempt 1/10 for 10 pts. What is the expected return for the stock if the market risk premium is 10%

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