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Stock A has a beta of 0.8, and investors expect it to return 14%. Stock B has a beta of 1.2, and investors expect it
Stock A has a beta of 0.8, and investors expect it to return 14%. Stock B has a beta of 1.2, and investors expect it to return 18%. Use the CAPM to calculate the market risk premium and the expected rate of return on the market. (Enter your answers as a whole percent.)
Market Risk Premium _____%
Expected Market Rate of Return _____%
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