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Stock A has a beta of 0.5, and investors expect it to return 3%. Stock...

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Finance

Stock A has a beta of 0.5, and investors expect it to return 3%. Stock B has a beta of 1.5, and investors expect it to return 5%. Use the CAPM to calculate the market risk premium and the expected rate of return on the market. (Enter your answers as a whole percent.)

Market Risk Premium : ____ %

Expected market rate of return ___ %

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