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Problem 8-08 Two stocks, A and B, have beta coefficients of 0.5 and 1.0, respectively. If the expected return on the market is 12 percent

Problem 8-08

Two stocks, A and B, have beta coefficients of 0.5 and 1.0, respectively. If the expected return on the market is 12 percent and the risk-free rate is 6 percent, what is the risk premium associated with each stock? Round your answers to two decimal places.

The risk premium for stock A: %

The risk premium for stock B: %

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