Describe use the capm to find the expected rate of return

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Stock A has a beta of .5, and investors expect it to return 5%. Stock B has a beta of 1.5, and investors expect it to return 9%. Use the CAPM to find the expected rate of return and the market risk premium on the market. Do not round intermediate calculations. Round your answers to 1 decimal place.

Reference no: EM1358270

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