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step by step solutions please. no excel solutions 2. Using the CAPM, answer the following problems: a. A stock has a beta of 1.2, the

image text in transcribedstep by step solutions please. no excel solutions
2. Using the CAPM, answer the following problems: a. A stock has a beta of 1.2, the expected return on the market is 17 percent, and the risk-free rate is 8 percent. What must the expected return on this stock be? b. A stock has an expected return of 14 percent, the risk-free rate is 4 percent, and the market risk premium is 6 percent. What must the beta of this stock be? c. A stock has an expected return of 15 percent, its beta is 0.9, and the risk-free rate is 6 percent. What must the expected return on the market be? d. A stock has an expected return of 22 percent and a beta of 1.6, and the expected return on the market is 16 percent. What must the risk-free rate be

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