Stock a has a beta of 5 and investors expect it to return 6


Stock A has a beta of .5, and investors expect it to return 6%. Stock B has a beta of 1.5, and investors expect it to return 12%.

Use the CAPM to calculate the market risk premium and the expected rate of return on the market.

(Do not round intermediate calculations. Enter your answers as a whole percent.)

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Financial Management: Stock a has a beta of 5 and investors expect it to return 6
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