What should be the expected return on the stock

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1. A stock has a 30% chance of returning 5%, otherwise it'll return 13.3%. What is the expected return?

2. A stock has a beta of 1.42. If the risk free rate is 4.6%, and the expected market return is 11.4%, what should be the expected return on the stock, according to the CAPM? Enter answer in percents.

Reference no: EM131065608

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