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Please show the specific progress and formula. Assume that CAPM holds in the economy. Stock AAA has a risk premium of 7%. Stock BBB has

image text in transcribed Please show the specific progress and formula.

Assume that CAPM holds in the economy. Stock AAA has a risk premium of 7%. Stock BBB has Beta that is twice as high as stock AAA: BBBB = 2 . BAAA. What is the risk premium on stock BBB? Show your work

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