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c. Security market Line D. Security market Line E(Ri) 0.18 a. You expect an RFR of 9 percent and the market return (RM) of 13

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c. Security market Line D. Security market Line E(Ri) 0.18 a. You expect an RFR of 9 percent and the market return (RM) of 13 percent. Compute the expected return for the following stocks. Round your answers to two decimal places. Choose the correct SML graph. The correct graph is b. You ask a stockbroker what the firm's research department expects for these three stocks. The broker responds with the information below. Indicate what actions you would take with regard to these stocks. Round your answers to two decimal places. If you believe the appropriateness of these estimated returns, you would buy and sell Choose the correct SML graph. Note that labels with asterisk denote estimated returns. The correct graph is c. Security market Line D. Security market Line E(R)0.18 B. Security market Line c. Security market Line E(Ri) b. You ask a stockbroker what the firm's research department expects for these three stocks. The broker responds with the information below. Indic What actions you would take with regard to these stocks. Round your answers to two decimal places: B. Security market Line c. Security market Line E(Ri)0.18 D. Security market Line

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