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Stock A has a beta of 0 . 6 and investors expect it to return 8 % . Stock B has a beta of 1

Stock A has a beta of 0.6 and investors expect it to return 8%. Stock B has a beta of 1.4 and
investors expect it to return 16%. Use the CAPM to find the market risk premium and the
expected rate of return on the market.
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