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You are given the information below. Assuming the market is efficient and the stocks are correctly priced, what is the expected return on the market?
You are given the information below. Assuming the market is efficient and the stocks are correctly priced, what is the expected return on the market? (5 points)
Security | Beta | E[R] |
New Sportswear | 0.3 | 9% |
Old Sportswear | 0.8 | 20% |
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