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If the stocks have volatilities 20% and 30%, and if all investors have quadratic utility so that the CAPM accurately describes the data being used,

  1. If the stocks have volatilities 20% and 30%, and if all investors have quadratic utility so that the CAPM accurately describes the data being used, what is the equilibrium expected return (or equilibrium expected return or the CAPM implied expected return as practitioners call it) on the stocks in excess of the risk-free asset?

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