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Currently, the risk-free rate is 3.2 percent. Stock A has an expected return of 11.4 percent and a beta of 1.11. Stock B has an

Currently, the risk-free rate is 3.2 percent. Stock A has an expected return of 11.4 percent and a beta of 1.11. Stock B has an expected return of 13.7 percent. The stocks have equal reward-to-risk ratios. What is the beta of Stock B?

1.08

1.33

1.36

1.42

1.27

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