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Based on the CAPM, the required rate of return on a stock is 12%, the stock is 20 percent more risky than a well-diversified market

Based on the CAPM, the required rate of return on a stock is 12%, the stock is 20 percent more risky than a well-diversified market portfolio. Risk free interest rate is 4% and expected return on the market is 10%. What is the markets risk premium? What is the stocks risk premium in that order? 5%; 6% 5%; 6% 6%; 6% 6%; 5% None of the above

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