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According to the figure, what is the expected return for a portfolio with beta=1.5? According to the figure above, a stock A has beta=2.5, and

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According to the figure, what is the expected return for a portfolio with beta=1.5?

According to the figure above, a stock A has beta=2.5, and expected rate of return 17.5%. Which of the following statements are correct?

According to the figure above, stock B has beta=2, and expected rate of return 10%. The excess return (alpha) for stock B is: ?

Again, according to the figure above, and following the results of the previous question (stock B has beta=2, and expected rate of return 10%). Which of the following statements are correct about stock B?

I. investors will buy stock B

II. investors will sell/short stock B

III. the price of stock B will go up

IV. the price of stock B will go down

Y SML 10% 5% X 1

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