Question: The risk-free return is 6%. The expected return on a stock whose beta is 1.4 is 24%. What is the expected return on the market

  1. The risk-free return is 6%. The expected return on a stock whose beta is 1.4 is 24%.
  1. What is the expected return on the market portfolio?
  2. What is the market risk premium (MRP)?
  3. What is the risk premium if the stock (RP)?

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