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ABR #7) Stock A has a beta of 1.84 and an expected return of 20.2 percent. Stock B has a beta of 1.24 and an

ABR #7) Stock A has a beta of 1.84 and an expected return of 20.2 percent. Stock B has a beta of 1.24 and an expected return of 15.4 percent. If CAPM holds, what should the return on the market and the risk-free rate be? (Round intermediate calculations and the final answers to 2 decimal places, e.g. 2.36%.)

Return on market ______%

Risk-free rate _______ %

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