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Consider two stocks, A and B, Stock A has an expected return of 20,5% and a beta of 2,1, Stock B has an expected return
Consider two stocks, A and B, Stock A has an expected return of 20,5% and a beta of
2,1, Stock B has an expected return of 12,4% and a beta of 1,4, The expected market
rate of return is 10.5% and the risk-free rate is 2.0%. Security would be considered the better buy because _______.
A.) B; it offers an expected return of 0,65%
B.) A; it offers an expected excess return of 1.50%
C) A; it offers an expected excess return of 0.65%
D.) B; it offers an expected excess return of 1.50%
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