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Assume a risk-free rate of 4.5%,MT=7.5%,GLOBAL1=0.3% and GLOBAL 2 =0.6% a. Determine the expected returns for the three stocks using only the MT risk factor

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Assume a risk-free rate of 4.5%,MT=7.5%,GLOBAL1=0.3% and GLOBAL 2 =0.6% a. Determine the expected returns for the three stocks using only the MT risk factor and the expected returns using all three risk factors. b. Compare the differences between the expected returns from the single-factor model and those from a multifactor model. Recommend which estimates are more likely to be useful in practice

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