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Stock A has a beta of 1.3 and an expected return of 10.3. Stock B has a beta of 0.7 and an expected return of

Stock A has a beta of 1.3 and an expected return of 10.3. Stock B has a beta of 0.7 and an expected return of 8.5. If these stocks are priced correctly according to the CAPM, what is the equity premium? Give your answer in percentage to the nearest basis point.

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