Question: Solve in Excel. Show formulas Assuming the expected market rate of return is 16% and the rate on T-bills is 5%. Using the CAPM calculate

Solve in Excel. Show formulas

Assuming the expected market rate of return is 16% and the rate on T-bills is 5%.

Using the CAPM calculate the following:

a. The market risk premium.

b. The slope of the Security Market Line.

c. The required rate of return on stock (A) with a beta of 0.8

d. The required rate of return on stock (B) with a beta of 2.20

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