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Let's say that you are looking to invest in two stocks A and B. Stock A has a beta of 0.59 and based on your
Let's say that you are looking to invest in two stocks A and B. Stock A has a beta of 0.59 and based on your best estimates is expected to have a return of 8%. Stock has a beta of 061 and is expected to earn 7%. If the risk-free rate is currently 2% and the expected return on the market is 9%, which stock(s) should you invest in, if any? O Do not buy stock A, do not buy stock B Buy stock A, buy stock B Buy stock A, do not buy stock B O Buy stock A, buy stock B O Buy stock A, do not buy stock B
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