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(25 points) Using the CAPM, which of the following choices is the best investment? Why? Assume the expected return on the market index is 10%

(25 points) Using the CAPM, which of the following choices is the best investment? Why? Assume the expected return on the market index is 10% and the risk free rate is 2%. (you must show your work) 2. Beta 1.3 1.6 1.1 Asset Expected Return 12% 14% 11%

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