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CAPM v2 Next year the expected market return is 5.4% and the risk-free rate is 1%. a. What is the expected return of a stock

CAPM v2 Next year the expected market return is 5.4% and the risk-free rate is 1%.

a. What is the expected return of a stock with a beta of 0.56 according to the CAPM? Answer in percentage form with two decimals (i.e. 12.45%, not 0.1245). %

b. What is the Risk Premium of the market? Answer in percentage form with two decimals (i.e. 12.45%, not 0.1245). %

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