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Security Actual Return Std Dev Beta A 27% 20% 1.6 B 22% 25% 0.9 Risk free 3% 0% 0 What is the market premium? Did

Security Actual Return Std Dev Beta

A 27% 20% 1.6

B 22% 25% 0.9

Risk free 3% 0% 0

What is the market premium? Did Stock A (over/under/exactly) perform its expected return?

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