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What are the risk-free return and the expected return

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Question - Stock A has an expected return of 12% p.a. and a beta of 1.4. Stock B has an expected return of 9% p.a. and a beta of 0.8. What are the risk-free return and the expected return on the market portfolio, if both stocks are correctly priced by the CAPM?

Reference no: EM132556483

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