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Consider the following multifactor (APT) model of security returns for a particular stock. Assume that the market views that the stocks A and B are

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Consider the following multifactor (APT) model of security returns for a particular stock. Assume that the market views that the stocks A and B are fairly valued under APT. a) (3 points) If the expected return of stock A is 18% what is the risk-free rate in this economy? b) (3 points) If the expected return of stock B is 14% what is the Industrial Production beta for stock B? (Use the risk free-rate you found in (a) above)

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