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Consider the following stocks. Stock Expected return Std. Deviation Beta A 15.9% 27.8% 0.93 B 17.8% 23.0% -1.15 C 35.1% 47.6% 0.79 D 24.2% 39.3%

Consider the following stocks.

Stock

Expected return

Std. Deviation

Beta

A

15.9%

27.8%

0.93

B

17.8%

23.0%

-1.15

C

35.1%

47.6%

0.79

D

24.2%

39.3%

1.26

If the risk-free rate is 2%, calculate risk-adjusted return for stocks A and C

57.2% for stock A and 77.4% for stock C

19.2% for stock A and 57.2% for stock C

15.5% for stock A and 19.2% for stock C

17.1% for stock A and 44.4% for stock C

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