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Assume the risk-free rate is 8%. Stock A has a of 1.8 and a return of 25% and Stock B has a of 1.2 and
Assume the risk-free rate is 8%. Stock A has a of 1.8 and a return of 25% and Stock B has a of 1.2 and a return of 30%. If the return on the stock market is 13%, the return per unit risk for stocks A and B in equilibrium will be:
9.44% and 18.33%, respectively
9.44% and 9.44%, respectively
5.00% and 5.00%, respectively
18.33% and 9.44%, respectively
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