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a)Your expectations for the Market return is 6% and the risk-free rate is 1%. If you have a stock with a Beta of 0.5, what

a)Your expectations for the Market return is 6% and the risk-free rate is 1%. If you have a stock with a Beta of 0.5, what is the expected return of your stock?

b)What is the Market Risk premium in the problem above?

c)If the expected return on the market is 11% and the risk free rate is 2%, what is the expected return on your portfolio above?

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