Question: We know that two stocks A and B are correctly priced by the CAPM model. For A, the expected return is 12%, and the beta

We know that two stocks A and B are correctly priced by the CAPM model. For A, the expected return is 12%, and the beta is 1.5; for B, the expected return is 6%, and the beta is 0.5.

What are the values of risk-free rate and market risk premium?

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