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Stock A has a beta of 1.78 and an expected return of 19.9 percent. Stock B has a beta of 1.18 and an expected return
Stock A has a beta of 1.78 and an expected return of 19.9 percent. Stock B has a beta of 1.18 and an expected return of 14.8 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%.)
Return on market
%
Risk-free rate
%
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