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estion 18 ent has called you about a stock, DJB. He claims it offers an expected return of 14%. The client is prepared to purchase
estion 18 ent has called you about a stock, DJB. He claims it offers an expected return of 14%. The client is prepared to purchase th Du agree. Based on your research, you believe the beta coefficient of stock DJB is 1.2. addition the return on the market is expected to be 12 %. Government long term bonds yield 5%. You advise to not buy he stock as the Rf is 5% You advise buying the stock as its expected return exceeds the required return You advise against the stock as the required return is 19.4% You cannot make a recommendation with this information A c B d a b Question 19 If the correlation between two stocks is-1, the returns: A) generally move in the same direction. 2 Points 20) Last saved
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