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Assume the risk-free rate is 4.1% and expected market risk premium is 6.4%. Suppose that you have observed the following returns over time: Year Stock

Assume the risk-free rate is 4.1% and expected market risk premium is 6.4%. Suppose that you have observed the following returns over time:

Year

Stock A

Market

2015

5%

12%

2016

7%

10%

2017

-9%

-12%

2018

1.5%

1%

2019

10%

15%

2020

17.5%

20%

What is the beta for Stock A and what is the required return for A based on CAPM?

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