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Suppose that the market s average excess return on stocks is 1 0 . 0 0 % and that the risk - free rate is

Suppose that the markets average excess return on stocks is 10.00% and that the risk-free rate is 2.00%. Complete the following table by computing expected returns to stocks for each beta coefficient using the Capital Asset Pricing Model (CAPM):
bi
Expected Return to Stocks (%)
0.50
0.30
1.00
3.00

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