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Stock A has a beta of .8, and investors expect it to return 10%. Stock B has a beta of 1.2, and investors expect it
Stock A has a beta of .8, and investors expect it to return 10%. Stock B has a beta of 1.2, and investors expect it to return 12%. Use the CAPM to find the expected rate of return and th emarket risk premium on the market. (Do not round intermediate calculations. Round your answers to 1 decimal palce.) What is the expected rate of return_____? what is the market risk premium______
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