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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

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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 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% 0.8

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