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Two stocks, A and B , have beta coefficients of 0 . 9 and 1 . 4 , respectively. If the expected return on the
Two stocks, A and B have beta coefficients of and respectively. If the expected return on the market is percent and the riskfree rate is percent, what is the risk premium associated with each stock? Round your answers to two decimal places.
The risk premium for stock A:
The risk premium for stock B:
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