Question: 1) What is the expected market return if the expected return on asset A is 16% and the risk free rate is 7%? Asset A

1) What is the expected market return if the expected return on asset A is 16% and the risk free rate is 7%? Asset A has a beta of 1.2.

2) Asset A has an expected return of 22% and a beta of 1.8. The expected market return is 14%. What is the risk free rate?

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