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A. (2) Apple stock has a market beta of 2 and Facebook stock has a market beta of 1. The risk-free rate is 5% and

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A. (2) Apple stock has a market beta of 2 and Facebook stock has a market beta of 1. The risk-free rate is 5% and the market return is 10%. Which of the following statements is incorrect: Apple stock has more firm-specific risk than Facebook stock Apple stock has a higher expected rate of return than the market Apple stock has more systematic risk than Facebook stock Apple stock has higher expected returns than Facebook because it is riskier

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