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Carol Smith, a portfolio manager at Amherst Asset Management, is using CAMP for making recommendations to her clients. Her research department has developed the following

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Carol Smith, a portfolio manager at Amherst Asset Management, is using CAMP for making recommendations to her clients. Her research department has developed the following information: a. Calculate the equilibrium expected return based on CAPM and the alpha for each stock. b. Identify and justify stock would be more appropriate for an investor who wants to: 1) Add this stock to a well-diversified portfolio. 2) Hold this stock as a single-stock portfolio

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