Assume that the CAPM holds. One stock has an expected return of 7% and a beta of 0.4. Another stock has an expected return of 13% and a beta of 1.5. Attempt 2/3 for 6.7 pts. Part 1 What is the expected return on the market?

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Assume that the CAPM holds. One stock has an expected return of 7% and a beta of 0.4. Another stock has an expected return of 13% and a beta of 1.5.  Attempt 2/3 for 6.7 pts.  Part 1  What is the expected return on the market?

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