Question: 2. The risk-free return is 8%. The expected return on stock A whose beta is 2, is 28%. What is the expected return on the

 2. The risk-free return is 8%. The expected return on stock

2. The risk-free return is 8%. The expected return on stock A whose beta is 2, is 28%. What is the expected return on the market portfolio? What is the market risk premium? What is the risk premium of the stock A? (8 points)

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