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#12: Please complete all parts of question 12 Part 1 Part 2 Stock A's beta is 1.4 and Stock B's beta is 0.8. If the
#12: Please complete all parts of question 12 
Stock A's beta is 1.4 and Stock B's beta is 0.8. If the CAPM holds, which of the following statements is correct? Stock B is a better addition to a portfolio than A. Held as an individual security, stock A is riskier than B. The expected return on stock B is greater than that on A. The expected return on stock A is greater than that on B. A stock has a beta of 1.6. The market risk premium is 3% and the risk-free rate is 4%. What is the expected return for the stock according to the CAPM Part 1
Part 2
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Environmental Finance And Investments
Authors: Marc Chesney, Jonathan Gheyssens, Anca Claudia Pana, Luca Taschini
2nd Edition
366248174X, 978-3662481745
