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Ma Stock A has a beta of 0.85 and an expected return of 8%. Stock B has a beta of 1.32 and an expected return
Ma Stock A has a beta of 0.85 and an expected return of 8%. Stock B has a beta of 1.32 and an expected return of 14%. If CAPM holds, what should the return on the market be? The expected market return is %. (Please retain at least 4 decimal places in your calculations and at least 2 decimal places in the final answer.)
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