Assume that the CAPM is a good description of stock price returns.The market expected return is 8% with 12% volatility and the risk-free rate is 3%.New news arrives that does not change any of these numbers, but it does change the expected returns of the following stocks:

1 points Save Answer QUESTION 8 Assume that the CAPM is a good description of stock price returns. The market expected return is 8% with 12% volatility and the risk-free rate is 3%. New news arrives that does not change any of these numbers, but it does change the expected returns of the following stocks: Stock Expected Return Volatility Beta Taggart Transcontinental 8% 28% 1.2 Rearden Metal 13% 40% 1.7 Wyatt Oil 7% 20% 0.8 Nielson Motors 10% 32% 1.3 Which of the following stocks represent selling opportunities? 1. Taggart Transcontinental 2. Rearden Metal 3. Wyatt Oil 4. Nielson Motors 2 & 3 only 1 only 1 & 2 only 2 & 4 only Click Save and Submit to save and submit. Click Save All Answers to save all answers