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We know that two stocks A and B are correctly priced by the CAPM model. For A, the expected return is12%, and the beta is 1.5; for B, the expected

return is 6%, and the beta is 0.5. Based on this information,what is the risk free rate and expected market return? А. 3%; 9% В. 3%%;B 6% C. 2%; 8% D. 4%; 10%

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