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Suppose that the risk-free rate is 5% and that the market risk premium is 7%. What is the required return on (1) the market, (2)

Suppose that the risk-free rate is 5% and that the market risk premium is 7%. What is the required return on (1) the market, (2) a stock with a beta of 1.0, and (3) a stock with a beta of 1.7? Assume that the risk-free rate is 5% and that the market risk premium is 7%.

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