Question
If two stocks are priced according to the CAPM, Stock 1 has a 1.25 beta and a 10% expected return and Stock 2 has a
If two stocks are priced according to the CAPM, Stock 1 has a 1.25 beta and a 10% expected return and Stock 2 has a beta of .60 and a 8% expected return. What is the risk-free rate and market risk premium?
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