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Assume that CAPM holds in the economy. Stock AAA has a risk premium of 7%. Stock BBB has a Beta that is twice as high
Assume that CAPM holds in the economy. Stock AAA has a risk premium of 7%. Stock BBB has a Beta that is twice as high as Stock AAA: Beta(BBB) = 2 x Beta(AAA)
What is the risk premium on Stock BBB? Show how you find the answer please!:)
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