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Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: a. What are the betas of
Consider the following table, which gives a security analyst's expected return on two stocks for two particular market returns: a. What are the betas of the two stocks? b. What is the expected rate of return on each stock if the market return is equally likely to be 6% or 16%? d. If the T-bill rate is 7%, and the market return is equally likely to be 6% or 16%, what are the alphas of the two stocks
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