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estion 2 The risk-free rate of return is 4 percent, and the market retum is 10 percent. The E are 8 percent, 9 percent, 10

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estion 2 The risk-free rate of return is 4 percent, and the market retum is 10 percent. The E are 8 percent, 9 percent, 10 percent, 14 percent, and 6 percent, respectively to CAPM? a. E b. A C. B d. D e. C t. The betas of Stocks A, B, C, D, and Eare 0.85,0.95,1.20135.05. ely. Which stock should a rational investor purchase? in other words, which MacBook Pro % B 11 R E Question 2 of 30 7 points Save Answer 1.20, 1.35, and 0.5, respectively. The expected rates of return for Stocks A, B, C, D, and other words, which stock is correctly priced and has the right rate of return according MacBook Pro & 7 8

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