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You are evaluating two stocks, stock A and stock B. Assume a risk-free (Treasury bill) rate of 2%. Stock A and stock B have an

You are evaluating two stocks, stock A and stock B. Assume a risk-free (Treasury bill) rate of 2%. Stock A and stock B have an expected return of 10% and 7%, respectively, and have Betas of 1.8 and 1.4, respectively.

What is the risk premium of stock A?

Cannot determine due to insufficient data

10%

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