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The expected return on stock A is 11.15 percent. The expected return on stock B is 8.30 percent. Assuming CAPM holds, if the beta of

image text in transcribed The expected return on stock A is 11.15 percent. The expected return on stock B is 8.30 percent. Assuming CAPM holds, if the beta of stock A is higher than the beta of stock B by 0.13 , what should the risk premium be? (Round answer to 2 decimal places, e.g. 2.36%.)

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