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1. Stock A has an expected return of 12% with a standard deviation of 4%, while stock B has an expected return of 10% with
1. Stock A has an expected return of 12% with a standard deviation of 4%, while stock B has an expected return of 10% with a standard deviation of 9%. Determine which stock you are going to pick using mean and standard deviation rule.
Depends on your risk tolerance
Pick B
Depends on how much money you are going to invest
Pick A
2. Stock A has a beta of 1.14, The T-bill rate is 3.6%, and the return on market portfolio is 11.6%. The required rate of return on Stock A is
13.53%
12.10%
15.50%
12.72%
10%
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