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Suppose you observe the following situation Security Beta Expected Return Abel Co. 1.8 13.4% Baker Co. 0.6 7.4% Assume these securities are correctly priced according

Suppose you observe the following situation

Security Beta Expected Return

Abel Co. 1.8 13.4%

Baker Co. 0.6 7.4%

Assume these securities are correctly priced according to SML. What is the expected return on the market?

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