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CAPM ...Suppose the risk-free rate is 8 percent. The expected return on the market is 16 percent. If a particular stock has a beta of

CAPM...Suppose the risk-free rate is 8 percent. The expected return on the market is 16 percent. If a particular stock has a beta of .7, what is its expected return based on the CAPM? If another stock has an expected return of 24 percent, what must its beta be?

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