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Consider the single-factor APT. Stocks A and B have expected returns of 15% and 18%, respectively. The risk-free rate of return is 6%. Stock B
Consider the single-factor APT. Stocks A and B have expected returns of 15% and 18%, respectively. The risk-free rate of return is 6%. Stock B has a beta of 1.0. If arbitrage opportunities are ruled out, stock A has a beta of
rev: 03_31_2016_QC_CS-46831
Select one:
a. 0.67.
b. 1.00.
c. 1.30.
d. 1.69.
e. 0.75.
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