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The stock of XYZ, Inc. has a beta a 1.2 and an expected return of 12 percent. The market risk premium is eight percent. What

The stock of XYZ, Inc. has a beta a 1.2 and an expected return of 12 percent. The market risk premium is eight percent.

What is the risk-free rate of return?

b. What is the expected rate of return on the market?

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