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Stock A has a beta of 1.66 and an expected return of 19.3 percent. Stock B has a beta of 1.06 and an expected return
Stock A has a beta of 1.66 and an expected return of 19.3 percent. Stock B has a beta of 1.06 and an expected return of 13.6 percent. If CAPM holds, what should the return on the market and the risk-free rate be? (Round intermediate calculations and the final answers to 2 decimal places, e.g. 2.36\%.)
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