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Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 3%. Suppose also that the expected rate of return required

Suppose the rate of return on short-term government securities (perceived to be risk-free) is about 3%. Suppose also that the expected rate of return required by the market for a portfolio with a beta of 1 is 8%. According to CAPM:

please show work

What is the expected rate of return on a stock with = 0.

What is the market risk premium?

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