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Given the following two stocks A and B If the expected market rate of return is 0 . 0 9 and the risk - free
Given the following two stocks A and B
If the expected market rate of return is and the
riskfree rate is which security would be
considered the better buy and why?
Select one:
a B because it offers an expected excess
return of
b B because it offers an expected return of
c A because it offers an expected excess
return of
d B because it has a higher beta.
e A because it offers an expected excess
return of
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