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Consider the following information about Stocks And B: Returns B Stats economy Prob 0.15 -0.25 0.11 Rece 0.55 0.18 011 Normal 0.31 0.3 0.08 Irrational
Consider the following information about Stocks And B: Returns B Stats economy Prob 0.15 -0.25 0.11 Rece 0.55 0.18 011 Normal 0.31 0.3 0.08 Irrational Exuberance The market risk premium is 7.5 percent, and the risk- free rate is 4 percent. Which stock has the most systematic risk? Which one has the most unsystematic risk? Which stock is "riskier"? Explain
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