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Q9 Security A has an expected rate of return of 12% and a beta of 1.1. the market expected rate of return is 8% and

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Q9 Security A has an expected rate of return of 12% and a beta of 1.1. the market expected rate of return is 8% and the risk free rate is 5%. The alpha of the stock is? Q10 Consider two stocks, A and B Stock A has an expected return of 10% and beta of 1.2. Stock B has an expected return of 14% and a beta of 1.8. The expected market rate of return is 9% and the risk free rate is 5%. Security considered he better buy because would be A-A; It offers an expected excess return of .2% B-A: It offers an expected excess return of 2.2% C-B, It offers an expected excess return of 1.8% D-B: It offers an expected return of 2.4%

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