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15.95%; 16.35% 16.80%; 11.45% 14.33%; 13.67% Question 2 The beta of Stock A is 2.1. The risk-free rate is 6 percent, and the market return

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15.95%; 16.35% 16.80%; 11.45% 14.33%; 13.67% Question 2 The beta of Stock A is 2.1. The risk-free rate is 6 percent, and the market return is 13 percent. The expected rate of return of Stock Ais 155 perc on the above information, which of the following statements is true? An investor should buy Stock A because its expected rate of retum is less than the required rate of return. O An investor should buy Stock A because its expected rate of return is greater than the required rate of return. O An investor should not buy Stock A because its expected rate of return is greater than the required rate of return. O An investor should not buy Stock A because its expected rate of return is less than the required rate of return. An investor should be indifferent towards buying or selling the stock. Question 3 with the market is persent, and the risk-free rate is 5 percent. Applicati

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