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Using CAPM. A. A stock has a beta () of 0.9, the expected return on the market portfolio is 10% and the risk free rate

Using CAPM.

A. A stock has a beta () of 0.9, the expected return on the market portfolio is 10% and the risk free rate is 5%. What must the expected return on this stock be?

B. Rework part a if the beta () were 1.2.

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