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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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