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Stock A has an expected return of 13.54 percent. Stock B has an expected return of 10.77 percent. Assuming the Capital Asset Pricing Model holds,

Stock A has an expected return of 13.54 percent. Stock B has an expected return of 10.77 percent. Assuming the Capital Asset Pricing Model holds, and Stock A's beta is greater than Stock B's beta by 0.52, what is the expected market risk premium (in percent)?

Answer to two decimals

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