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Equation 1 0 . 0 6 = r f + 0 . 5 ( R m - R f ) Equation 2 0 . 1

Equation

1

0.06 = r_{f} + 0.5 (R_{m} - R_{f})

Equation

2

0.12 = r_{f} + 1.5 (R_{m} - R_{f})

Calculate expected return of market and risk free rate

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