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Suppose you observe the following situation: Calculate the expected return on Stock A and Stock B (%) Assuming the capital asset pricing model holds and

Suppose you observe the following situation:

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Calculate the expected return on Stock A and Stock B (%)

Assuming the capital asset pricing model holds and stock As beta is greater than stock Bs beta by .25, what is the expected market risk premium? (%)

Suppose you observe the following situation:Calculate the expected return on Stock A and Stock B (%) Assuming the capital asset pricing model holds and stock A½s beta is greater than stock B½s beta by .25, what is the expected market risk premium? (%)

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