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Consider the following two stocks, K and L. Stock K has an expected return of 9% and a beta of 1.20. Stock L has an

Consider the following two stocks, K and L. Stock K has an expected return of 9% and a beta of 1.20. Stock L has an expected return of 12.2% and a beta of 1.80. The expected market rate of return is 7% and the risk-free rate is 3%. which stock is a better investment and why? [8 points 4

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