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Assume that using the Security Market Line (SML) the required rate of return (RA) on stock A is found to be half of the required
Assume that using the Security Market Line (SML) the required rate of return (RA) on stock A is found to be half of the required return (RB) on stock B. The risk-free rate (Rf) is one-fourth of the required return on A. Return on market portfolio is denoted by RM.
Find the ratio of beta of A (A) to beta of B (B).
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