Question: Consider the following two stocks: Stock Beta Expected return A 1.4 25% B 0.7 14% Assume the CAPM holds. Based upon the CAPM, what is

Consider the following two stocks: Stock Beta Expected return A 1.4

Consider the following two stocks: Stock Beta Expected return A 1.4 25% B 0.7 14% Assume the CAPM holds. Based upon the CAPM, what is the return on the market? What is the risk-free rate

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