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Given the following information: The risk - free rate is 2 . 5 % , the beta of stock A is 1 . 5 ,
Given the following information: The riskfree rate is the beta of stock A is the beta of stock B is the expected return on stock A is and the expected return on stock B is Further, we know that stock A is fairly priced and that the betas of stocks A and B are correct. Is stock B fairly priced? Need all calculations, steps and explanations, no excel solutions please
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