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. Chance Inc's stock has an expected return of 10%, a beta of 1.5, and is in equilibrium. Assume the nominal risk-free rate is 4.00%.

. Chance Inc's stock has an expected return of 10%, a beta of 1.5, and is in

equilibrium. Assume the nominal risk-free rate is 4.00%.

(a) what is the market risk premium?

(b) What is the equity risk premium?

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