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Financial Economics. Please show all steps Question 12. Suppose tleie are two stocks. A and B. Stock A has an expected return of 8% and

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Financial Economics. Please show all steps

Question 12. Suppose tleie are two stocks. A and B. Stock A has an expected return of 8% and 4-1 Stock B has expected return of 12% and 1.5. The market expected return is 6%. The risk-free rate is 2%, what are the a's of each stock? which stock is a better bay? Is this a violation of CAPM? Why or why not Explain If CAPAI is violated here, what mit aid , be for CAPM to be valid

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