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Question 3 Your broker has developed a list of firms, their betas, and the return he expects the stock to yield over the next twelve
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Your broker has developed a list of firms, their betas, and the return he expects
the stock to yield over the next twelve months labeled "Expected Return" You
have estimated that the riskfree rate is and the return to the market will be
Assuming that CAPM is correct, which stock should you purchase?
Anderson, Inc.
Nathan's Bakeries
Delta Vanlines
All of the stocks
Zman Electronics
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