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Assume that the risk-free rate, RF, is currently 5% and that the market return, rm , is currently 8%. a.Calculate the market risk premium. b.Given

Assume that the risk-free rate, RF, is currently 5% and that the market return, rm, is currently 8%.

a.Calculate the market risk premium.

b.Given the previous data, calculate the required return on asset A having a beta of 0.6 and asset B having a beta of 1.7.

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