Question: ABC Corporation: Expected Return = 10.18%, Beta = 1.06 XYZ Corporation: Expected Return = 12.69%, Beta = 1.41 Assume that both assets are priced correctly


ABC Corporation: Expected Return = 10.18%, Beta = 1.06

XYZ Corporation: Expected Return = 12.69%, Beta = 1.41

Assume that both assets are priced correctly according to CAPM.

Calculate the following:

Risk-free Rate = %

Market Risk Premium = %

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