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Suppose you observe the following situation: a. Calculate the expected return on each stock. (Do not round intermediate calculations. Round the final answers to 2
Suppose you observe the following situation: a. Calculate the expected return on each stock. (Do not round intermediate calculations. Round the final answers to 2 decimal places.) b. Assuming the capital asset pricing model holds and Stock A 's beta is greater than Stock B 's beta by 0.65 , what is the expected market risk premium? (Do not round intermediate calculations. Round the final answer to 2 decimal places.) Expected market risk premium %
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