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Stock A has expected return of 1 5 % and standard deviation of 2 0 % . Stock B has expected return 2 0 %

Stock A has expected return of 15% and standard deviation of 20%. Stock B has expected return 20% and standard deviation of 15%. The two stocks have a correlation coefficient of 0.5.The beta of stock A is 1 and the beta of stock B is 1.5. What is the risk premium on the market portfolio? What is the risk free rate in the economy?

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