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Lets say that you are looking at investing in two Stocks A and B. A hasa beta of 1.3 and based on your best estimates
Lets say that you are looking at investing in two Stocks A and B. A hasa beta of 1.3 and based on your best estimates is expected to have a return of 12%.B has a beta of 0.9 and is expected to earn 9%. If the risk-free rate is currently4% and the expected return on the market is 11%, determine whether these stocksare worth investing in. Explain thoroughly all your steps.
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