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Intro Assume that the CAPM holds. One stock has an expected return of 7% and a beta of 0.3. Another stock has an expected return

Intro

Assume that the CAPM holds. One stock has an expected return of 7% and a beta of 0.3. Another stock has an expected return of 12% and a beta of 1.5.

Part 1

What is the expected return on the market?

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