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Consider the following information about Stocks I and II: The market risk premium is 8 percent, and the risk-free rate is 6 percent. The standard
Consider the following information about Stocks I and II: The market risk premium is 8 percent, and the risk-free rate is 6 percent. The standard deviation on Stock I's return is percent, and the Stock I beta is The standard deviation on Stock II's return is percent, and the Stock beta is Therefore, based on the stock's systematic risk/beta, Stock is "riskier
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