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Suppose the yield on short-term government securities (risk-free) is 4%. Suppose also that the expected return required by the market for a portfolio with a

  1. Suppose the yield on short-term government securities (risk-free) is 4%. Suppose also that the expected return required by the market for a portfolio with a beta of 1 is 12%. According to CAPM:
    1. What would be the expected return on a zero-beta stock?

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