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Assume there are two stocks, A and B, with A = 1.4 and B = 0.8. Assume also that the CAPM model applies. If the

Assume there are two stocks, A and B, with A = 1.4 and B = 0.8. Assume also that the CAPM model applies. If the mean return on the market is 10% and the risk-free rate of return is 5%. Compute the required rate of return on stock A and B.

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