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According to the information below : A) Stock B analyst estimated return is 12.5% B) Stock B analyst estimated return is 16% C) Stock B
According to the information below :
A) Stock B analyst estimated return is 12.5%
B) Stock B analyst estimated return is 16%
C) Stock B analyst estimated return is 15.5%
D) Stock B analyst estimated return is 14%
An analyst expects a risk-free return of 4.5 percent, a market return of 14.5 percent, and the returns for Stocks A and B that are shown in the following table. Stock INFORMATION Stock Beta Analyst's Estimated Return 1.2 A B 16% 14% 0.8Step by Step Solution
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